An independent two-stage DCF analysis by a frontier AI model.
" data-astro-cid-77x5fwy2> ADP is a mature compounder. An 8% rate accounts for consistent high single-digit revenue growth and modest margin expansion.
" data-astro-cid-77x5fwy2> 10Y Treasury: 4.18%. For a defensive company with high recurring revenue, a 9% discount rate provides a solid required return.
" data-astro-cid-77x5fwy2> Long-term nominal GDP growth is ~3%. ADP operates as a tax on employment; they will grow steadily alongside the overall economy.
Intrinsic value per share under varying discount rate and terminal growth rate assumptions.
| WACC ↓ / Terminal → | 2.0% | 2.5% | 3.0% | 3.5% | 4.0% |
|---|---|---|---|---|---|
| 2.0% | $23.04 | $19.20 | $16.46 | $14.40 | $12.80 |
| 2.5% | $25.60 | $20.95 | $17.72 | $15.36 | $13.55 |
| 3.0% | $28.80 | $23.04 | $19.20 | $16.46 | $14.40 |
| 3.5% | $32.91 | $25.60 | $20.95 | $17.72 | $15.36 |
| 4.0% | $38.40 | $28.80 | $23.04 | $19.20 | $16.46 |
■ Undervalued vs current price ■ Overvalued vs current price
Westmount Research. "ADP (ADP) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, 2026-03-19.
Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.