Valuation dashboard for Automatic Data Processing, Inc. (ADP) with P/E 26.22, P/B 23.05, EV/EBITDA 18.2 and dividend yield 2.30%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Technology companies.
Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing.
What would it be worth at its usual multiples?
Versus its usual multiples: cheap · Current P/E 26.2× · Multiples range: $351.97 · $355.63.
At the decade median (31.2×) $352 (+19 %); at its sector median (31.5×) $356 (+20 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Analysis Summary
Automatic Data Processing, Inc. reported revenue of $21.95B in the most recent fiscal year, growing at a 5-year CAGR of 7.9%. Net income reached $4.41B, with a 11.2% 5-year CAGR.
Trailing-twelve-month margins: gross margin 50.0%, operating margin 24.8%, net margin 20.3%.
At $296.01 (closing price, November 3, 2026), ADP trades at a P/E of 26.22 and an ROE of 75.85%. Market capitalisation stands at $117.3B, placing it among large-cap names.
Balance sheet quality for ADP: debt-to-equity ratio of 1.07, current ratio of 1.03 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Valuation Ratios
| P/E Ratio | 26.22 |
| Price / Book | 23.05 |
| EV / EBITDA | 18.2 |
| Dividend Yield | 2.30% |
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| ADP | Automatic Data Processing, Inc. | $117.3B | 26.22 | 23.05 | 75.9% |
| PAYX | Paychex, Inc. | $41.2B | 22.99 | 11.10 | 47.1% |
| WDAY | Workday, Inc. | $47.7B | 40.15 | 7.63 | 16.8% |
| PCTY | Paylocity Holding Corporation | $8.9B | 34.78 | 7.44 | 23.4% |
| PAYC | Paycom Software, Inc. | $11.9B | 27.95 | 21.08 | 40.4% |
Price
| Price | $296.01 (closing price, November 3, 2026) |
| Market Cap | $117.3B |
| Exchange | NASDAQ |
| Country | US |
Profitability
| Return on Equity | 75.85% |
| Return on Invested Capital | 34.57% |
| Return on Assets | 7.13% |
| Gross Margin | 50.05% |
| Operating Margin | 24.77% |
| Net Margin | 20.33% |
Related companies: PAYX · WDAY · PCTY · PAYC
Explore sector: Technology · Software - Application
More sections of ADP: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events
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