ADT seen as 50% undervalued with strong growth and buyback plans despite flat 2026 outlook

ADT is now considered a more attractive investment after Apollo's full exit and significant share repurchases. Although the company projects flat revenue and EPS for 2026, it aims for a 5% revenue and 10% EPS compound annual growth rate by leveraging AI and the Origin AI acquisition to improve operations and differentiate itself. A discounted cash flow analysis values ADT at $10.33 per share, indicating a 50% undervaluation and an 8.5% shareholder yield. Risks include a potential State Farm exit and competitive pressures, but ADT's unique offerings and capital strategy support a Strong Buy rating at current prices.