Automatic Data Processing (ADP) fundamentals: P/E, valuation, undervalued?
Automatic Data Processing · Industrials · ref. ETF XLI · price $275.9
In short — Automatic Data Processing trades at 25.0× earnings (P/E), 20.6× forward, with a net margin of 20.1 % and revenue growth of +7 %. Read: Average P/E (P/E 25 (near the ~20-25 average)).
Is Automatic Data Processing stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.
📈 1-year price
$275.9-3.5% over range
Oct 14, 25low $188.79 · high $287.48Oct 13, 26
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SellBuy
Hold
33% recommend buying · 9 analysts
Valuation : Average P/E — P/E 25 (near the ~20-25 average)
Valuation
25.0
P/E (price/earnings)
20.6
Forward P/E
2.55
PEG
18.2
Price/book (P/B)
$109.3B
Market cap
11.02
EPS
Profitability & growth
20.1 %
Net margin
+7 %
Revenue growth
+10 %
Earnings growth
$5.5B
Total debt
Automatic Data Processing income statement
| Fiscal year | Revenue | Net income | Margin |
|---|---|---|---|
| 2022 | $16.5B | $2.9B | 17.9 % |
| 2023 | $18.0B | $3.4B | 18.9 % |
| 2024 | $19.2B | $3.8B | 19.5 % |
| 2025 | $20.6B | $4.1B | 19.8 % |
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.
Frequently asked questions
What is Automatic Data Processing's P/E and is the stock undervalued? What's a good P/E?
Automatic Data Processing's P/E is 25.0 (forward 20.6). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Average P/E".
Is Automatic Data Processing profitable?
Automatic Data Processing has a net margin of 20.1 % (EPS 11.02). The company is profitable.
Is ADP stock expensive?
Our read: "Average P/E" — P/E 25 (near the ~20-25 average). Cross-check with growth and sector.
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