---
title: ADP (ADP) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/adp
ticker: ADP
as_of: 2026-10-17
sector: Technology
industry: Software - Application
---
# ADP (ADP)

ADP (ADP) closed at $288.90 on Oct 16, 2026, overvalued by 65% vs its model value of $175.56 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $288.90 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $175.56 |
| Price vs model | overvalued by 65% vs model |
| Range of that model | $122.71 – $326.05 |
| Market value | $114.5B |
| P/E (fiscal 2026) | 26.4 |
| Net margin (fiscal 2026) | 20.1% |
| Free cash flow (fiscal 2026) | $5.2B |
| Dividend yield (trailing twelve months) | 2.35% |
| Beta | 0.84 |
| Cost of capital (WACC) | 8.72% |
| Business classification | Dividend Payer (Low/slowing growth (~7% recent), High profitability (20% net margin), Pays dividends, Moderately volatile earnings) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week highs | #9 | 0.0% | https://sweetvaluelab.com/lists/near-52-week-highs |
| Dividend growth streaks | #16 | 42+ years | https://sweetvaluelab.com/lists/dividend-growth-streaks |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 2.35% |
| Dividends per share, last 12 months | $6.80 |
| Dividends / free cash flow (fiscal 2026) | 50.1% |
| Raised | 42+ years in a row |
| Growth over 5 years | 12.8% a year |
| Latest payment | $1.70, ex-date Sep 11, 2026, paid Oct 1, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 9, 2021 | $3.72 |
| To Sep 8, 2022 | $4.16 |
| To Sep 7, 2023 | $5.00 |
| To Sep 13, 2024 | $5.60 |
| To Sep 12, 2025 | $6.16 |
| Trailing twelve months (to Sep 11, 2026) | $6.80 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $175.56 | $122.71 | $326.05 |
| DCF · Perpetuity growth · 10y | cross check | $188.52 | $134.54 | $339.49 |
| DCF · EBITDA exit · 5y | cross check | $190.16 | $133.62 | $256.81 |
| DCF · EBITDA exit · 10y | cross check | $200.35 | $142.61 | $277.39 |
| P/E · peers | cross check | $224.90 | $221.21 | $237.94 |
| P/E · own history | cross check | $354.90 | $328.60 | $390.68 |
| PEG | sanity check | $152.12 | $152.12 | $152.12 |
| EV/EBITDA · peers | cross check | $225.89 | $209.10 | $243.60 |
| EV/Revenue · peers | cross check | $248.38 | $200.10 | $297.88 |
| Earnings power value | cross check | $91.87 | $78.12 | $111.34 |
| Dividend discount | cross check | $153.48 | $106.31 | $247.58 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 11 open-market sales ($4.1M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 9, 2026 | Sugla Vishwas | Chief Strategy Officer | Grant / award | 2,827 | $0 |
| Sep 9, 2026 | Sugla Vishwas | Chief Strategy Officer | Grant / award | 2,073 | $0 |
| Sep 3, 2026 | DeSilva Joseph | Executive VP | Open-market sell (10b5-1 plan) | 631 | $178,491 |
| Sep 1, 2026 | Rodriguez Carlos A | Director | Tax withholding | 13,471.836 | $3.8M |
| Sep 1, 2026 | Orihuela Samantha D | Chief Marketing Officer | Grant / award | 1,163 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 24, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/8670/000130817926000411/adp015474-ars.pdf |
| Sep 24, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/8670/000130817926000410/adp015474-defa14a.htm |
| Sep 24, 2026 | DEF 14A | Proxy statement | https://www.sec.gov/Archives/edgar/data/8670/000130817926000409/adp015474-def14a.htm |
| Aug 5, 2026 | 10-K | Annual report | https://www.sec.gov/Archives/edgar/data/8670/000000867026000030/adp-20260630.htm |
| Jul 29, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/8670/000000867026000025/adp-20260729.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| First Eagle | 2026-06-30 | 5,173,929 | $1.2B |
| Terry Smith | 2026-06-30 | 2,601,567 | $582.6M |
| Francois Rochon | 2026-06-30 | 654,556 | $146.6M |
| Mairs & Power | 2026-06-30 | 127,173 | $28.5M |

7 tracked managers in all.

## About

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…

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Source: https://sweetvaluelab.com/stocks/adp (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.