Is It Time To Revisit ADP (ADP) After A 24% One-Year Share Price Decline?

Simply Wall St.03-11

If you are wondering whether Automatic Data Processing's current share price lines up with its underlying worth, this article walks through the key numbers that shape that view. The stock last closed ...

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The stock last closed ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-adp/automatic-data-processing/news/is-it-time-to-revisit-adp-adp-after-a-24-one-year-share-pric\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Time To Revisit ADP (ADP) After A 24% One-Year Share Price Decline?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Time To Revisit ADP (ADP) After A 24% One-Year Share Price Decline?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-11 22:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/commercial-services/nasdaq-adp/automatic-data-processing/news/is-it-time-to-revisit-adp-adp-after-a-24-one-year-share-pric><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Automatic Data Processing's current share price lines up with its underlying worth, this article walks through the key numbers that shape that view. The stock last closed ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-adp/automatic-data-processing/news/is-it-time-to-revisit-adp-adp-after-a-24-one-year-share-pric\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GB00B4QBRK32.GBP","symbol_name":"FUNDSMITH EQUITY \"R\" (GBP) INC","start_time":0,"source_url":"https://simplywall.st/stocks/us/commercial-services/nasdaq-adp/automatic-data-processing/news/is-it-time-to-revisit-adp-adp-after-a-24-one-year-share-pric","article_id":"2618961925","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/126269-main-header/1756253857925"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/commercial-services/nasdaq-adp/automatic-data-processing/news/is-it-time-to-revisit-adp-adp-after-a-24-one-year-share-pric","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2618961925","pubTimestamp":1773238707,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Automatic Data Processing's current share price lines up with its underlying worth, this article walks through the key numbers that shape that view.\nThe stock last closed at US$217.37, with returns of 0.5% over 7 days, a 6.0% decline over 30 days, a 14.0% decline year to date, a 24.0% decline over 1 year, 8.1% over 3 years and 27.4% over 5 years. These figures give important context before weighing what the shares might be worth today.\nRecent coverage around...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","BK4588":"碎股","LU0965509101.SGD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"A\" (SGDHDG) ACC","LU1228905037.USD":"NINETY ONE GSF GLOBAL QUALITY DIVIDEND GROWTH \"A\" (USD) ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU0345774391.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","LU2404859741.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) INC","LU1934455863.HKD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (HKD) ACC","LU0861579265.USD":"联博低波幅策略股票基金A","LU1236620750.USD":"HSBC GIF GLOBAL SUSTAINABLE LONG TERM DIVIDEND \"AM2\" (USD) INC","LU1221951046.USD":"NORDEA 1 STABLE RETURN \"HM\" (USDHDG) INC","LU2404859667.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) ACC","LU1032955483.USD":"NORDEA 1 STABLE RETURN \"HB\" (USDHDG) ACC","LU1228905540.USD":"NINETY ONE GSF GLOBAL QUALITY DIVIDEND GROWTH \"A\" (USD) INC 2","LU1236620834.HKD":"HSBC GIF GLOBAL SUSTAINABLE LONG TERM DIVIDEND \"AM2\" (HKD) INC","LU1221951129.SGD":"NORDEA 1 STABLE RETURN \"HM\" (SGDHDG) INC","IE00BYQQ9H92.USD":"BNY MELLON GLOBAL LEADERS \"A\" (USD) ACC","LU0690374961.EUR":"FUNDSMITH EQUITY \"R\" (EUR) INC","ADP":"自动数据处理","LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","LU0690374615.EUR":"FUNDSMITH EQUITY \"R\" (EUR) ACC","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","LU0823417737.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC","LU2506951958.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) INC","LU1037948897.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (HKD) INC","LU1196500208.SGD":"NORDEA STABLE RETURN \"HB\" (SGDHDG) ACC","BK4585":"ETF&股票定投概念","LU0965508806.USD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (USD) INC","LU0950375773.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC A","LU1934455277.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"AD\" (USD) INC","LU0545562505.USD":"NINETY ONE GSF GLOBAL QUALITY DIVIDEND GROWTH \"A\" (USD) INC","LU1691799644.USD":"Amundi Funds Polen Capital Global Growth A2 (C) USD","LU0965509283.SGD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (SGDHDG) INC","BK4130":"人力资源与就业服务","LU1037948541.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"A\" (HKD) ACC","LU2506952170.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) INC","LU0345774631.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) INC","IE00BFXG0V08.USD":"BNY MELLON GLOBAL LEADERS \"B\" (USD) ACC","BK4528":"SaaS概念","BK4613":"AI应用软件","LU1934455194.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (USD) ACC","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","BK4106":"数据处理与外包服务","IE00B5TLWC47.USD":"BNY MELLON LONG-TERM GLOBAL EQUITY \"B\" (USD) ACC"},"translate_title":"股价一年下跌24%后，是时候重新审视ADP(ADP)了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"ADP":1.5},"content_text":"If you are wondering whether Automatic Data Processing's current share price lines up with its underlying worth, this article walks through the key numbers that shape that view. The stock last closed at US$217.37, with returns of 0.5% over 7 days, a 6.0% decline over 30 days, a 14.0% decline year to date, a 24.0% decline over 1 year, 8.1% over 3 years and 27.4% over 5 years. These figures give important context before weighing what the shares might be worth today. Recent coverage around Automatic Data Processing has focused on its role as a large payroll and human capital management provider, and how investors may be reassessing what they are willing to pay for that kind of business model. This mix of interest in the sector and changing sentiment around established providers helps frame whether current pricing still reflects what investors expect from the company. Automatic Data Processing currently carries a valuation score of 4/6, based on how many of six separate checks indicate the shares look undervalued. We will walk through the main valuation methods next, then finish with a different way of thinking about value that many investors overlook.  Find out why Automatic Data Processing's -24.0% return over the last year is lagging behind its peers. AdvertisementApproach 1: Automatic Data Processing Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes the cash Automatic Data Processing is expected to generate in the future, then discounts those projected cash flows back into today’s dollars to estimate what the whole business might be worth now. For Automatic Data Processing, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flowing to shareholders. The latest twelve month free cash flow is about $4.1b, and analysts contribute part of the forecast period, with later years extrapolated by Simply Wall St. By 2028, free cash flow is projected at $6.4b, and there is a full set of annual projections running out to 2035, each discounted back to today using the model’s assumptions. When these discounted cash flows are added together, the DCF model points to an estimated intrinsic value of about $420.25 per share. Compared with the recent share price of US$217.37, this framework implies the stock is 48.3% undervalued based on this specific cash flow model. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Automatic Data Processing is undervalued by 48.3%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks. ADP Discounted Cash Flow as at Mar 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Automatic Data Processing. Approach 2: Automatic Data Processing Price vs Earnings For profitable companies like Automatic Data Processing, the P/E ratio is a common way investors check how much they are paying for each dollar of earnings. It links directly to what the business is currently earning, which makes it a practical cross check against more detailed models like the DCF. What counts as a “normal” or “fair” P/E depends on how the market views the company’s growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while slower expected growth or higher risk often lines up with a lower P/E. Automatic Data Processing currently trades on a P/E of 20.67x, very close to its Professional Services industry average of 20.05x and its peer group average of 20.49x. Simply Wall St’s Fair Ratio is a proprietary estimate of what P/E might be reasonable for Automatic Data Processing given its earnings growth profile, industry, profit margins, market cap and risk factors. Because it adjusts for these company specific drivers, it can be more tailored than a simple comparison with peers or the broad industry. The Fair Ratio for Automatic Data Processing is 28.24x, which is higher than the current P/E of 20.67x, suggesting the shares screen as undervalued on this metric. Result: UNDERVALUED NasdaqGS:ADP P/E Ratio as at Mar 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies. Upgrade Your Decision Making: Choose your Automatic Data Processing Narrative Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives, where you choose the story you believe about Automatic Data Processing, link that story to your own forecasts for revenue, earnings and margins, and see an implied fair value that updates automatically when new information like news or earnings is added. This lets you compare that fair value to the current share price and, for example, see one user Narrative that values ADP at about US$387.77 per share and another at about US$259.70 per share, so you can decide which view lines up best with your own expectations. Do you think there's more to the story for Automatic Data Processing? Head over to our Community to see what others are saying! NasdaqGS:ADP 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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