Automatic Data Processing, Inc. (ADP) Stock Analysis
$ADP · Technology · Software - Application · NASDAQ
Automatic Data Processing (ADP), a Software - Application company, is listed on NASDAQ, has a market capitalization of about $114.48B and trades at 24.1x trailing earnings.
Price
$288.90
Market cap
$114.48B
P/E ratio
24.1x
Dividend yield
2.35%
About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages
How StockWorthy values ADP
StockWorthy forecasts Automatic Data Processing, Inc.'s revenue, operating profitability, reinvestment (capital expenditure, depreciation and working capital) and unlevered free cash flow, then discounts those cash flows using a normalized cost of capital built from ADP's size, profitability and balance-sheet risk. Terminal growth is adjusted to reflect the company's mature growth profile rather than a fixed number. The model presents bear, base and bull scenarios, and every key assumption stays transparent and adjustable in the full StockWorthy analysis. Results are educational and not investment advice.
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