Automatic Data ProcessingADP +0.27%91 Graham Number is $29.27 as of Mar. 2026, which is 307% above its 10-year median of 7.20. GuruFocus rates ADP with a GF Score™ of 91/100 and a GF Value™ of $304.80 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,469 Software companies, Automatic Data Processing ranks worse than 93.33% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Automatic Data Processing's Graham Number or its related term are showing as below:
ADP'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 4.78 Med: 7.2 Max: 32.17
Current: 8.27
During the past 13 years, the highest Price to Graham Number ratio of Automatic Data Processing was 32.17. The lowest was 4.78. And the median was 7.20.
ADP's Price-to-Graham-Number is ranked worse than 93.33% of 1469
companies
in the Software industry
Industry Median: 1.85
vs ADP: 8.27
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Automatic Data Processing (NAS:ADP) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Automatic Data Processing's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
241.92
/
29.27
=
8.27
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Automatic Data Processing Graham Number Related Terms
Automatic Data Processing Graham Number Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Automatic Data Processing's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Automatic Data Processing Price-to-Graham-Number vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Price-to-Graham-Number falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing (ADP) has a Graham Number of $29.27 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Automatic Data Processing and its competitors. This is 307% above median its historical median of 7.20. Over the past decade, Automatic Data Processing's Graham Number has ranged from 4.78 to 32.17. According to the industry distribution chart, Automatic Data Processing ranks #1371 out of 1469 companies in the Software industry, placing it in the top 93.3%.
Is Automatic Data Processing's Graham Number too high?
Automatic Data Processing's current Graham Number of $29.27 is 307% above median its 10-year median of 7.20. Over the past 10 years, this metric has ranged from a low of 4.78 to a high of 32.17. The Software industry median Graham Number is 1.85. Automatic Data Processing's value of $29.27 is 1482.2% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #1371 out of 1469 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Automatic Data Processing has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Graham Number compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #1371 out of 1469 companies for Graham Number. This places Automatic Data Processing in the lower half of its industry. The industry median Graham Number is 1.85. Automatic Data Processing's value of $29.27 is 1482.2% above this benchmark. Historically, Automatic Data Processing's own Graham Number has ranged from 4.78 to 32.17 over the past decade. While the company's 10-year median is 7.20 vs. the industry median of 1.85, Automatic Data Processing has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Software company?
The median Graham Number among Software companies is 1.85, based on 1,469 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Graham Number of $29.27 is 1482.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Graham Number is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Graham Number is $29.27, which is 307% above median its own 10-year median of 7.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Automatic Data Processing stock overvalued right now?
Based on GuruFocus' analysis, Automatic Data Processing (ADP) is currently considered Modestly Undervalued. The stock's GF Value™ is $304.80, compared to a current price of $241.92 — trading 20.6% below its estimated fair value. The current Graham Number is $29.27, which is 307% above median its 10-year median of 7.20 and 1482.2% above the Software industry median of 1.85. Automatic Data Processing's overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Automatic Data Processing (ADP), the current Graham Number is $29.27 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Automatic Data Processing (ADP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of $241.92 is trading 20.6% below its estimated GF Value™ of $304.80.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for ADP:
Graham Number: $29.27 (307% above median its 10-year median of 7.20)
GF Value™: $304.80 vs. price of $241.92 (20.6% below fair value)
Industry Position: 1482.2% above the Software median (#1371 of 1469)
No single metric tells the full story. See the ADP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Automatic Data Processing, or ADP, is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large market shares in its core markets. As of fiscal 2025, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
91GF Score
Get the complete analysis for ADP
Graham Number is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ADP has been successfully added to your 
