Thinking of Investing in ADP? What Our Analysts Know.

By Emilio Sanchez • Thursday, June 15 09:42 • Permanent Link

Automatic Data Processing trades -6.38% away from its average analyst target price of $231.12 per share. The 17 analysts following the stock have set target prices ranging from $180.0 to $275.0, and on average have given Automatic Data Processing a rating of hold.

If you are considering an investment in ADP, you'll want to know the following:

Automatic Data Processing's current price is 512.4% above its Graham number of $35.33, which implies that at its current valuation it does not offer a margin of safety
Automatic Data Processing has moved 8.1% over the last year, and the S&P 500 logged a change of 19.2%
Based on its trailing earnings per share of 7.81, Automatic Data Processing has a trailing 12 month Price to Earnings (P/E) ratio of 27.7 while the S&P 500 average is 15.97
ADP has a forward P/E ratio of 24.2 based on its forward 12 month price to earnings (EPS) of $8.94 per share
The company has a price to earnings growth (PEG) ratio of 1.97 — a number near or below 1 signifying that Automatic Data Processing is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 24.22 compared to its sector average of 6.23
Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide.
Based in Roseland, the company has 60,000 full time employees and a market cap of $89.39 Billion. Automatic Data Processing currently returns an annual dividend yield of 2.1%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.