AlphaStocks
5.0
Consider Buy

AUTOMATIC DATA PROCESSING INC (ADP)

Industrials / Human Resource & Employment Services

S&P 500

$211.32

Below average on several measures. Research carefully.

Consider Buy

Score based on 5 of 5 models — high confidence

#561out of 1126 in Industrials

Is AUTOMATIC DATA PROCESSING INC a Good Investment in 2026?

AUTOMATIC DATA PROCESSING INC (ADP) scores 5.0 out of 10 on AlphaStocks' composite model, earning a Consider Buy rating. The Piotroski model rates AUTOMATIC DATA PROCESSING INC as Strong (8/9). The Graham model is the least favorable, rating it Neutral. AUTOMATIC DATA PROCESSING INC currently trades below its estimated fair value of $256, suggesting potential upside. AUTOMATIC DATA PROCESSING INC ranks #561 out of 1126 stocks in the Industrials sector.

This summary is algorithmically generated and is not financial advice.

Key Metrics

P/E21.2ROE16.3Market Cap85BDiv Yield2.8

Estimated Fair Value

$255.6417% below

Fair value above market price. P/E of 21x is moderate for this quality level.

Model-based estimate, not a price target.

5-Model Analysis

Each model evaluates this stock from a different angle. Combined, they form the composite score above.

Piotroski

Strong

8/9

Buffett

Strong

Business quality & competitive moat

Graham

Neutral

80% above fair value

Lynch

Attractive

PEG 2.4 · Stalwart

Greenblatt

Attractive

Top 10% (rank 4%)

Frequently Asked Questions

Is AUTOMATIC DATA PROCESSING INC (ADP) a good investment?
Based on AlphaStocks' composite analysis, AUTOMATIC DATA PROCESSING INC (ADP) scores 5.0 out of 10, earning a Consider Buy rating. This score is below average, suggesting caution. Fair value above market price. P/E of 21x is moderate for this quality level.
What is AUTOMATIC DATA PROCESSING INC's Piotroski F-Score?
AUTOMATIC DATA PROCESSING INC's Piotroski F-Score status is Strong. The raw score is 8/9. The Piotroski F-Score evaluates financial health using 9 fundamental signals including profitability, leverage, and operating efficiency.
Is ADP overvalued or undervalued?
Based on AlphaStocks' model-based fair value estimate of $256, ADP appears undervalued. The stock currently trades 17% below its estimated fair value. Fair value above market price. P/E of 21x is moderate for this quality level.
How does ADP compare to other Industrials stocks?
AUTOMATIC DATA PROCESSING INC ranks #561 out of 1126 stocks in the Industrials sector, placing it in the top 50% of its sector by composite score. This is an above-average position relative to sector peers.
What do investment models say about ADP?
AlphaStocks evaluates ADP using five proven investment models. Piotroski: Strong; Buffett: Strong; Graham: Neutral; Lynch: Attractive; Greenblatt Magic Formula: Attractive. These models are combined into a single composite score of 5.0/10.

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Scores are algorithm-generated research tools, not investment recommendations. Past performance does not guarantee future results. Always do your own due diligence. Full disclaimer