Industrials · Human Resource & Employment Services · US stock · price as of 22 Oct 2026
Key indicators
Price
$307.94
52-week range
$188.16 – $308.63
Market cap
$124.2B
P/E (trailing)
28.2×
EV / EBITDA
18.4×
Free-cash-flow yield
4.4%
Dividend yield
2.2%
Revenue (last 12 months)
$21.9B
Revenue growth (3y a year)
6.8%
Operating margin
28.2%
Return on invested capital
66.4%
Net debt / EBITDA
0.2×
Fair value
Fair value (average of valid models)$314.57 middle half of models $310 – $342
Versus priceFair+2% to fair value
P/E multiple
$309.59
P/B multiple
$310.98
P/S multiple
$312.26
EV/EBITDA multiple
$312.70
EV/EBIT multiple
$321.20
EV/revenue multiple
$316.07
10-year DCF, EBITDA exit
$345.54
5-year DCF, EBITDA exit
$342.06
10-year DCF, revenue exit
$345.49
5-year DCF, revenue exit
$341.19
10-year DCF, growth exit
$263.50
5-year DCF, growth exit
$244.98
Dividend discount, stable
$363.83
Earnings power value
$274.60
Model uncertainty
Low
X-Ray Score
62/ 100 · Medium confidence · ahead of 86% of sector peers
Valuation62
Growth67
Profitability58
Financial health56
Dividends76
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Automatic Data Processing provides cloud-based human capital management software and outsourcing services, covering payroll, tax filing, benefits administration, time tracking and talent management. It serves businesses of all sizes around the world. Revenue comes from recurring fees for these services and from interest earned on client funds held before payroll and tax payments are made, which links results to interest rates.
Revenue at Automatic Data Processing Inc was $21.9 billion across the last twelve months. Across three years, sales expanded by 6.8% a year. Operating profit was 28.2% of revenue. It earned a return on invested capital of 66%. Debt after cash comes to 0.2 times EBITDA. Shareholders receive a dividend yielding 2.2%.
StocksXray gives Automatic Data Processing Inc an X-Ray Score of 62 out of 100 (medium confidence), ahead of 86% of the S&P 500 stocks in its sector. Its strongest lens is dividends (76) and its weakest is financial health (56).
Our fair value (the average of the valid models) is $314.57 (range $309.94 to $341.84). At $307.94 the stock trades 2% below that value, so the label is "Fair" with low model uncertainty. Fair value is a range, not a price target.
XStocksXray
Automatic Data Processing Inc (ADP)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$190.54
$203.53
$226.08
$298.15
$222.53
$307.94
Market cap
$80.2B
$84.6B
$93.2B
$121.9B
$89.7B
$124.2B
P/E
27.2×
24.8×
24.8×
29.9×
20.3×
28.2×
EV / revenue
5.0×
4.7×
4.8×
6.0×
4.1×
5.7×
EV / EBITDA
18.6×
16.3×
16.0×
19.3×
13.4×
18.4×
Price / free cash flow
25.9×
20.1×
22.4×
24.7×
16.5×
22.8×
Free-cash-flow yield
3.9%
5.0%
4.5%
4.1%
6.1%
4.4%
Price / book
24.9×
24.1×
20.5×
19.7×
14.9×
20.6×
Dividend yield
2.13%
2.35%
2.41%
2.02%
2.98%
2.21%
Fundamentals checklist ● 5 Good · ● 5 Average · ● 4 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−1.6%Bad
Risk models
Altman Z score2.4×Bad
Piotroski F-Score7 of 9Good
Growth
EPS growth (3y)10.0%Average
Revenue growth (3y)6.8%Average
Growth consistency100%Good
Balance sheet
Current ratio1.1×Bad
Net debt / EBITDA0.2×Good
Interest cover13.5×Average
Valuation
Fair value vs price1.0×Average
EBIT / EV yield4.9%Average
Profitability
Return on invested capital66.4%Good
Operating margin28.2%Good
Gross profitability16.1%Bad
XStocksXray
Automatic Data Processing Inc (ADP)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
16,498
18,012
19,203
20,561
21,947
21,948
Gross profit
7,036
8,059
8,726
9,464
10,187
10,187
Operating income
3,886
4,691
5,234
5,766
6,190
6,190
Net income
2,949
3,412
3,752
4,080
4,414
4,413
Diluted EPS ($)
7.00
8.21
9.10
9.98
10.94
10.92
Free cash flow
3,100
4,208
4,158
4,940
5,441
5,441
Gross margin
42.6%
44.7%
45.4%
46.0%
46.4%
46.4%
Operating margin
23.6%
26.0%
27.3%
28.0%
28.2%
28.2%
Net margin
17.9%
18.9%
19.5%
19.8%
20.1%
20.1%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
63,068
50,971
54,363
53,369
63,193
63,193
Cash
1,436
2,084
2,913
3,348
4,230
4,230
Total debt
2,988
2,990
2,992
8,745
4,965
4,965
Equity
3,225
3,509
4,548
6,188
6,031
6,031
Dividend per share ($)
4.05
4.79
5.45
6.02
6.64
6.64
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
