Automatic Data Processing Inc

ADP: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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ADP: Investor Day Highlights Improved Long-Term Growth Outlook Leading to Higher Valuation

Alex Medow

Jun 12, 2025

ADP provided a holistic update on the state of the business during their June 12 investor day. Management provided updated medium-term guidance surrounding growth and profitability. We now believe our prior expectations for long-term growth were too conservative and thus increase our fair value estimate for wide-moat ADP to $305 from $294, based on higher growth assumptions in both core payroll and PEO. We currently see shares as fairly valued.

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Automatic Data Processing Inc

ADP: Investor Day Highlights Improved Long-Term Growth Outlook Leading to Higher Valuation

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