ADP Weekly Hiring Drops to 35,750; DCF Suggests $214 Fair Value
ADP•ADP's NER Pulse shows a four-week moving average of 35,750 weekly private sector job additions for the period ending May 9, down from 40,750 the prior week. A recent DCF analysis values the company at an intrinsic $214 per share, signaling limited upside from current market valuations.
1. Preliminary NER Pulse Data for May 9
For the four weeks ending May 9, ADP’s NER Pulse reported a seasonally adjusted four-week moving average of 35,750 private sector job additions per week, down from 40,750 the prior week. The high-frequency data provide an early indicator of hiring trends, potentially influencing demand for ADP’s payroll and HR services.
2. DCF Valuation Indicates Limited Upside
A discounted cash flow analysis completed on May 27 estimates ADP’s intrinsic value at $214 per share, implying limited upside given current trading levels. The model incorporates ADP’s revenue growth projections, operating margins and a weighted average cost of capital, offering a framework for assessing valuation risks and opportunities.
