Is Automatic Data Processing, Inc. (ADP) Undervalued?
Based on the current stock price of $258.84 and a P/E ratio of 25.58,Automatic Data Processing, Inc. has a PEG ratio of 2.83.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.83, ADP appears to be potentially overvalued relative to its growth rate of 9.03%.
Based on a PEG ratio of 2.19 (adjusted for dividends).
Compare ADP vs Competitors
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How we analyzed ADP
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 25.58and dividing it by the annual growth rate of 9.03%.
PEG = 25.58 (P/E) ÷ 9.03 (Growth) = 2.83
Frequently Asked Questions about ADP
What is the current PEG Ratio for Automatic Data Processing, Inc. (ADP)?+
The current PEG Ratio for Automatic Data Processing, Inc. is 2.83. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is ADP stock undervalued right now?+
Based on the PEG ratio of 2.83, Automatic Data Processing, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for ADP?+
The PEGY ratio for Automatic Data Processing, Inc. is 2.19. This metric accounts for dividend yield (2.63%), providing a more complete valuation picture.