Value Sense
ADP
Automatic Data Processing, Inc. (ADP)
Last Price$306.51.3%
Market Cap$125.0B
LTM EPS
$9.62
EPS growth
8.9%
Ben Graham Fair Value
$217.8
Overvalued (Ben Graham formula)
(28.9%)
Stock quality
7/10
Great
ADP
is 62.1% overvalued
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ADP Ben Graham Fair Value

Ben Graham Fair Value
Ben Graham Revised Fair Value

Ben Graham Fair Value Assumptions

as of Mar 12, 2025
EPS
$9.62
P/E Base for no-growth company
8.5x
EPS growth
8.9%
Average Yield of AAA Corporate Bonds
4.4%
Current Yield of AAA Corporate Bonds
5.1%
Last share price
$306.5
Ben Graham Fair Value (local)
$217.8
Ben Graham Fair Value
$217.8
28.9% overvalued

Ben Graham Fair Value Calculation

EPS
$9.62
x
(
P/E base for no-growth
8.5x
+
2
x
EPS growth
8.9%
)
x
Average AAA
Bond Yield
4.4%
/
Current AAA Bond Yield
5.1%
=
Ben Graham Fair Value
$217.8

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ADP EPS growth & Dividend Yield

Annual
Quarterly
LTM
Industry Median
5Y Historical Average
Benchmark
EPS growth
Dividend Yield

ADP vs Peer Set: Ben Graham Fair Value Comparison

Ben Graham Fair Value
Ben Graham Revised Fair Value

GENERAL

BEN GRAHAM FAIR VALUE

FINANCIALS

Company name

Undervaluation / Overvaluation

Revenue growth

EPS growth

Net Income margin

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
(28.9%)
6.6%
10.8%
19.5%
Median Peer Set
1.4%
(3.9%)
4.7%
Kanzhun Limited logo
Kanzhun LimitedBZ
572.5%
25.2%
864.9%
18.5%
ManpowerGroup Inc. logo
ManpowerGroup Inc.MAN
444.5%
(83.7%)
70.8%
4.7%
TriNet Group, Inc. logo
TriNet Group, Inc.TNET
394.2%
2.7%
(47.4%)
3.4%
Kforce Inc. logo
Kforce Inc.KFRC
252.1%
(8.3%)
(16.3%)
3.6%
Korn Ferry logo
Korn FerryKFY
218.2%
(2.4%)
(18.3%)
6.1%
Insperity, Inc. logo
Insperity, Inc.NSP
173.5%
1.5%
(47.2%)
1.4%
Robert Half International Inc. logo
Robert Half International Inc.RHI
78.1%
(9.3%)
(37.2%)
4.3%
Barrett Business Services, Inc. logo
Barrett Business Services, Inc.BBSI
(15.1%)
1.4%
13.3%
4.7%
Paychex, Inc. logo
Paychex, Inc.PAYX
(42.9%)
5.4%
8.6%
32.0%
Upwork Inc. logo
Upwork Inc.UPWK
(514.6%)
11.6%
360.0%
28.0%

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FAQ

What is Automatic Data Processing, Inc.'s fair value according to the Ben Graham formula?

As of Dec 31, 2024, Automatic Data Processing, Inc.'s fair value using the Ben Graham formula is $217.8 per share. This is calculated using Ben Graham formula, where EPS is $9.6 and BVPS (Book Value Per Share) is $12.4. The current price of $306.5 suggests Automatic Data Processing, Inc. may be overvalued by this conservative metric.

What is Automatic Data Processing, Inc. earnings per share (EPS)?

Automatic Data Processing, Inc. earnings per share (EPS) for the twelve months ending Dec 31, 2024, was $9.6, a 8.9% growth year-over-year.

What is Automatic Data Processing, Inc.'s margin of safety based on the Ben Graham analysis?

Automatic Data Processing, Inc.'s margin of safety is negative 28.9%, calculated as (Graham Number - Current Price) / Current Price. A negative margin of safety suggests the stock doesn't provide the level of safety Graham typically sought in his investments.