Research / Stock / ADP
A
ADP
AUTOMATIC DATA PROCESSING INC
282.78
-0.23 -0.08%
close 2026-08-25
ADP reports no free cash flow we can read, so this model is discounting net income instead. That is a different model — net income carries non-cash charges and ignores capital spending — and its answer should be read as a rougher one.
Assumptions
5.1%
Market is pricing 5.1%— you agree
No trailing FCF growth rate — the series crosses zero or is too short, and a CAGR through a negative is not a number worth printing.
10 yrs
3.00%
7.78%
7.8% derived for this company beta 0.69 (1254d vs the S&P 500) · cost of equity 7.8% = 4.7% risk-free + 0.69 × 4.5% premium · 4% debt at 9.3%, taxed at 23%
Fair value
$283.09
+0.1%
At the market's assumptionsCurrent price $282.78Enterprise value 112.5B
Bear $189.97 (0.1% growth)Bull $421.35 (10.1%)
Today's market price is inside the range · band = your growth ±5pts, same model · the market itself prices 5.1%
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Present value of each projected year, Y1–Y10
34% the 10 forecast years66% terminal value
Same industry · Data Processing · trailing P/E for context
RDDTP/E 6232.8Bthis P/E: 26