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Automatic Data Processing Inc ADP

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ADP's Medium-Term Outlook Improves Amid Labor Shortages and Regulatory Change; FVE Up 7% to $216

Emma Williams Equity Analyst

Analyst Note

| Emma Williams |

We’ve raised our fair value estimate for wide-moat ADP 7% to $216 per share on upgraded medium-term forecasts following the fiscal 2021 Investor Day. At current share prices, ADP is trading at about a 9% premium to our updated fair value estimate.

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Company Profile

Business Description

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 920,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM solutions, HR outsourcing, insurance and retirement services. The smaller but faster-growing PEO segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

One ADP Boulevard
Roseland, NJ, 07068
T +1 973 974-5000
Sector Industrials
Industry Staffing & Employment Services
Most Recent Earnings Sep 30, 2021
Fiscal Year End Jun 30, 2021
Stock Type Cyclical
Employees 56,000