Automatic Data Processing (ADP)
Executive Summary Investment Thesis: ADP is a dominant payroll processor with a fortress moat built on switching costs and regulatory complexity. However, at 26-28x earnings with 7% growth, margin expansion limits reached, and alarming 170% debt surge, the stock trades at a full valuation offering minimal margin of safety. Business Classification: Stalwart (large-cap, 7-10% growth, mature business) Current Valuation Assessment: Current Price: $261 Estimated Intrinsic Value: $220-$240 Margin of Safety: -8% to -12% (insufficient) Recommendation: HOLD / AVOID Recommended Entry Zones: ...