Should I Buy ADP Stock in 2026?

Data-driven analysis and honest assessment for Automatic Data Processing Inc

Analysis Updated:
HOLDMixed signals - suitable for existing holders

Current Price: $0.00P/E: 20.4

Decision Score

5.8/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)6/10

Fair P/E of 20.4

Growth (20%)5/10

Growth data limited

Profitability (20%)8/10

Strong margins (20% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)5/10

Cash flow data limited

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$0.00

P/E Ratio

20.41

Revenue Growth

N/A

Profit Margin

20.1%

Market Cap

$87.4B

Dividend Yield

2.92%

How ADP Compares to Competitors

Understanding how ADP stacks up against peers helps inform your investment decision.

How ADP Compares to Peers

Upcoming Events for ADP

+5 Reasons TO Buy ADP

1. Exceptional profit margins of 20%

strong

Net margins above 20% indicate strong pricing power and competitive advantages.

-5 Reasons NOT to Buy ADP

1. Minimal revenue growth

low risk

Growth of 0.0% barely keeps pace with inflation.

Who Should Buy ADP?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Income Investors

    2.9% yield provides regular income

  • Conservative Investors

    Large-cap stability with solid balance sheet

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

Consider These Alternatives

If you're interested in ADP, compare these Technology peers:

Pro tip: Compare ADP directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for ADP

Frequently Asked Questions

What is ADP stock price today?

Visit our real-time dashboard for the current ADP stock price and live market data.

Is ADP stock going up or down today?

ADP stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy ADP stock now?

The decision to buy ADP depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is ADP a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for ADP based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is ADP stock overvalued or undervalued?

ADP currently trades at a P/E ratio of 20.41 relative to earnings. Our DCF calculator provides intrinsic value estimates to help determine if ADP is fairly priced.

What is ADP's P/E ratio?

ADP has a price-to-earnings (P/E) ratio of 20.41, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is ADP's market cap?

ADP (Automatic Data Processing Inc) has a market capitalization of $87.45 billion, making it a mid-cap stock.

What is ADP's price to book ratio?

ADP trades at a price-to-book (P/B) ratio of 13.97, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.