Automatic Data Processing, Inc.

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188.1

52-week range

329.9

221.84

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per share

5.7 %

Dividend Yield TTM

2.9 %

Market cap $

$ 88,677

Price / Earnings TTM

P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per share

20.7

Price / Book TTM

PEG TTM

Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rate

2.1

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

(29.7) %

25.4 %

194.5 %

Free cash flow per share growth

33.9 %

109.6 %

253.8 %

Earnings per share growth

9.7 %

75.1 %

245.6 %

Founded: 1,949

Employees: 64,000

Business Summary:Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Fair Value Reference Estimate