Stock Valuation / ADP
Is Automatic Data Processing, Inc. (ADP) Overvalued? Fair Value & 5-Year Target
Automatic Data Processing, Inc. trades at $275.90 (P/E 25.22). Our reference model estimates a fair value of $245.77 at its recent average P/E of 22.46.
| Current price | $275.90 |
|---|---|
| Current EPS | $10.94 |
| Current P/E | 25.22 |
| Average P/E | 22.46 |
| Fair value (at avg P/E) | $245.77 |
| Upside to fair value | -10.9% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $550.11 |
What drives ADP's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. Its PEO Services segment provides HR outsourcing solutio
Frequently asked questions
What is ADP's fair value?
At its recent average P/E of 22.46, Automatic Data Processing, Inc. (ADP) has a reference fair value of about $245.77, which is -10.9% versus the current price of $275.90.
Is Automatic Data Processing, Inc. (ADP) overvalued or undervalued?
Based on the average-P/E reference model, Automatic Data Processing, Inc. looks overvalued relative to fair value by roughly +10.9%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for ADP?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $550.11. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive ADP valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.