AUTOMATIC DATA PROCESSING INC (ADP)

Services-Computer Processing & Data Preparation

Latest Price

$276.63

TTM P/E

25.80

Normalized P/E

30.72

Div Yield

2.40%

Book Value

15.74

P/B Ratio

17.58

Valuation metrics

EPS: $10.94

Book value / share: $15.16

Formula: √(22.5 × EPS × BVPS)

Graham Number

$61.09

78% downside

Norm. op. income: $4.7B (median of 7yr)

Tax rate: 23%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$88.98

68% downside

Base FCF: $4.0B (median of recent 5yr)

Growth: 6%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$183.34

34% downside

EPS: $10.94

Target P/E: 30×

Formula: EPS × P/E

P/E Fair Value

$328.20

+19% upside

90.4% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
BlackRock, Inc.	36.16M	$8.10B	9.09%	+657.4K	2026-06-30
VANGUARD CAPITAL MANAGEMENT LLC	26.10M	$5.84B	6.56%	-54.9K	2026-06-30
STATE STREET CORP	20.39M	$4.60B	5.13%	+1.06M	2026-06-30
Invesco Ltd.	13.56M	$3.04B	3.41%	+9.35M	2026-06-30
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	12.73M	$2.85B	3.20%	+1.17M	2026-06-30
Sixth Street Partners Management Company, L.P.	12.73M	$2.85B	3.20%	--	2026-06-30
GEODE CAPITAL MANAGEMENT, LLC	11.96M	$2.68B	3.01%	-38.2K	2026-06-30
VANGUARD PORTFOLIO MANAGEMENT LLC	10.54M	$2.36B	2.65%	-510.7K	2026-06-30
WELLINGTON MANAGEMENT GROUP LLP	10.03M	$2.25B	2.52%	-75.2K	2026-06-30
MORGAN STANLEY	8.36M	$1.87B	2.10%	+1.97M	2026-06-30