Automatic Data Processing (XTER:ADP) Moat Score: 8/10 (As of Jul. 02, 2026)


XTER:ADP Automatic Data Processing Inc XTER:ADP
87 GF Score
Price €210.40
GF Value €264.73
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Automatic Data Processing Moat Score?

Automatic Data Processing XTER:ADP +2.63% 87 Moat Score is 8 as of Jul. 02, 2026. GuruFocus rates XTER:ADP with a GF Score™ of 87/100 and a GF Value™ of €264.73 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,844 Software companies, Automatic Data Processing ranks better than 99.86% on this metric.

Automatic Data Processing has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Automatic Data Processing has Wide Moat: ADP has a robust wide moat due to its market leadership in payroll services, strong brand, and significant customer switching costs. The company benefits from economies of scale and a superior distribution network, ensuring durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Automatic Data Processing might have Wide Moat - Clear and robust wide moat.

Automatic Data Processing  (XTER:ADP) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Automatic Data Processing Moat Score Related Terms

XTER:ADP vs SNOW, DDOG, ADBE: Moat Score Comparison

For the Software - Application subindustry, Automatic Data Processing's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Automatic Data Processing's Moat Score distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Moat Score falls into.


XTER:ADP
87GF Score
Automatic Data Processing Inc XTER:ADP
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
Automatic Data Processing (XTER:ADP) has a Moat Score of 8 as of Jul. 02, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Automatic Data Processing ranks #4 out of 2844 companies in the Software industry, placing it in the top 0.099999999999994%.
Is Automatic Data Processing's Moat Score too high?
Automatic Data Processing's current Moat Score is 8. Based on the distribution chart, Automatic Data Processing ranks #4 out of 2844 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Automatic Data Processing has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Moat Score compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #4 out of 2844 companies for Moat Score. This places Automatic Data Processing in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Automatic Data Processing's current Moat Score is 8. 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 (XTER:ADP) is currently considered Modestly Undervalued. The stock's GF Value™ is €264.73, compared to a current price of €210.40 — trading 20.5% below its estimated fair value. The current Moat Score is 8. Automatic Data Processing's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Automatic Data Processing (XTER:ADP), the current Moat Score is 8 as of Jul. 02, 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 (XTER:ADP) Overvalued in 2026?

Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued. The current stock price of €210.40 is trading 20.5% below its estimated GF Value™ of €264.73. GuruFocus considers Automatic Data Processing to be Modestly Undervalued.

Key valuation signals for XTER:ADP:

  • Moat Score: 8
  • GF Value™: €264.73 vs. price of €210.40 (20.5% below fair value)
  • GF Score™: 87/100 with 2 warning signs

No single metric tells the full story. See the XTER:ADP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Automatic Data Processing Business Description

Address One ADP Boulevard, Roseland, NJ, USA, 07068
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.
87GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€210.40
Price
€264.73
GF Value