11.5% Below Target

Automatic Data Processing, Inc. (ADP) has a consensus 12-month price target of $243.63, implying 11.5% upside from $218.41. The 36 analysts covering ADP see moderate appreciation potential.

ADP has a consensus rating of "Hold" based on 36 Wall Street analysts. The rating breakdown is mixed, with 23 Hold ratings making up the largest segment. The consensus 12-month price target of $243.63 implies 11.5% upside from current levels.

With a forward P/E of 19.7279x, ADP trades at a relatively low valuation. The consensus target of $243.63 implies 11.5% appreciation, suggesting meaningful undervaluation.

The most bullish Wall Street analyst has a price target of $281 for ADP, while the most conservative target is $190. The consensus of $243.63 represents the median expectation. Our quantitative valuation model projects a bull case target of $353 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

ADP is heavily covered by Wall Street, with 36 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 8 have Buy ratings, 23 recommend Hold, and 5 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month ADP stock forecast based on 36 Wall Street analysts shows a consensus price target of $243.63, with estimates ranging from $190 (bear case) to $281 (bull case). The median consensus rating is "Hold". Our proprietary valuation model produces a base case fair value of $268, with bear/bull scenarios of $169/$353.

Our quantitative valuation model calculates ADP's fair value at $268 (base case), with a bear case of $169 and bull case of $353. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 65/100.

ADP trades at a forward P/E ratio of 19.7x based on next-twelve-months earnings estimates compared to a trailing P/E of 21.9x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Wall Street analysts are optimistic on ADP, with a "Hold" consensus rating and $243.63 price target (11.5% upside). 8 of 36 analysts rate it Buy or Strong Buy. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

ADP analyst price targets range from $190 to $281, a 37% moderate spread showing some variance in outlooks. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $243.63 consensus represents the middle ground. Our model's $169-$353 range provides an independent fundamental perspective.