Key Considerations Before Investing in ADP

By Emilio Sanchez • Thursday, October 02 15:27 • Permanent Link

Large-cap Industrials company Automatic Data Processing has moved -0.9% so far today on a volume of 1,120,331, compared to its average of 1,671,563. In contrast, the S&P 500 index moved 0.0%.

Automatic Data Processing trades -9.13% away from its average analyst target price of $318.17 per share. The 12 analysts following the stock have set target prices ranging from $290.0 to $340.0, and on average have given Automatic Data Processing a rating of hold.

Anyone interested in buying ADP should be aware of the facts below:

Automatic Data Processing's current price is 473.4% above its Graham number of $50.42, which implies that at its current valuation it does not offer a margin of safety
Automatic Data Processing has moved 2.5% over the last year, and the S&P 500 logged a change of 17.7%
Based on its trailing earnings per share of 9.97, Automatic Data Processing has a trailing 12 month Price to Earnings (P/E) ratio of 29.0 while the S&P 500 average is 29.3
ADP has a forward P/E ratio of 26.6 based on its forward 12 month price to earnings (EPS) of $10.87 per share
Its Price to Book (P/B) ratio is 18.94 compared to its sector average of 2.89
Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide.
Based in Roseland, the company has 67,000 full time employees and a market cap of $117.12 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.