Automatic Data Processing (ADP) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
ADP is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides human resour...
Automatic Data Processing (ADP) currently trades at a P/E ratio of 26.41 (historical range: 17.57–38.97, median: 30.12), placing it at the 20th percentile — below its historical average, P/S ratio of 5.31 (range: 3.54–6.84, 32th percentile — below its historical average), EV/EBITDA of 20.53 (range: 13.62–30.69, 20th percentile).
Over the historical period (2021-09-13 to 2026-10-16), Automatic Data Processing's P/E ratio has contracted by 13% over the observed period (from an average of 31.5 to 27.4).
Automatic Data Processing trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 26.41 | 30.12 | 20th | below its historical average |
| P/S Ratio | 5.31 | 5.61 | 32th | below its historical average |
| EV/EBITDA | 20.53 | 23.40 | 20th | below its historical average |
| FCF Yield | 4.61% | 3.70% | 86th | cheap relative to its history |
Automatic Data Processing (ADP) Valuation & P/E History
Automatic Data Processing (ADP) is a US-listed stock operating in the Technology sector, specifically the Services-Computer Processing & Data Preparation industry currently trading at $287.98 with a market capitalization of $114.1 billion. This page provides historical valuation analysis for ADP based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 26.41 is below the historical median of 30.12, placing ADP at the 20th percentile of its valuation range. The P/S ratio of 5.31 compares to a median of 5.61.
ADP Valuation Metrics & Historical Range
The valuation table above shows Automatic Data Processing's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether ADP is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests ADP is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Automatic Data Processing.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is ADP Overvalued or Undervalued?
Automatic Data Processing trades well below its historical valuation range across most metrics. The overall valuation percentile of 24 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive ADP is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full ADP analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.ADP trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.