ADP PE Ratio & Valuation, Is ADP Overvalued

Historical Valuation

Automatic Data Processing Inc (ADP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.63 is considered Undervalued compared with the five-year average of 27.87. The fair price of Automatic Data Processing Inc (ADP) is between 426.98 to 470.70 according to relative valuation method. Compared to the current price of 217.37 USD , Automatic Data Processing Inc By Undervalued By 49.09%.

Relative Value

Fair Zone

426.98-470.70

Current Price：217.37

49.09%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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Automatic Data Processing Inc (ADP) has a current Price-to-Book (P/B) ratio of 16.06. Compared to its 3-year average P/B ratio of 23.31, the current P/B ratio is approximately -31.08% higher. Relative to its 5-year average P/B ratio of 23.23, the current P/B ratio is about -30.85% higher. Automatic Data Processing Inc (ADP) has a Forward Free Cash Flow (FCF) yield of approximately 4.50%. Compared to its 3-year average FCF yield of 3.85%, the current FCF yield is approximately 16.79% lower. Relative to its 5-year average FCF yield of 3.59%, the current FCF yield is about 25.14% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for ADP competitors is 20.07, providing a benchmark for relative valuation. Automatic Data Processing Inc Corp (ADP.O) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 6.16%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of ADP increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of ADP in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is ADP currently overvalued or undervalued?

Automatic Data Processing Inc (ADP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 22.63 is considered Undervalued compared with the five-year average of 27.87. The fair price of Automatic Data Processing Inc (ADP) is between 426.98 to 470.70 according to relative valuation method. Compared to the current price of 217.37 USD, Automatic Data Processing Inc is Undervalued By 49.09%.

What is Automatic Data Processing Inc (ADP) fair value?

ADP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of Automatic Data Processing Inc (ADP) is between 426.98 to 470.70 according to relative valuation method.

How does ADP's valuation metrics compare to the industry average?

The average P/S ratio for ADP's competitors is 20.07, providing a benchmark for relative valuation. Automatic Data Processing Inc Corp (ADP) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 6.16%, this premium appears unsustainable.

What is the current P/B ratio for Automatic Data Processing Inc (ADP) as of Mar 11 2026?

As of Mar 11 2026, Automatic Data Processing Inc (ADP) has a P/B ratio of 16.06. This indicates that the market values ADP at 16.06 times its book value.

What is the current FCF Yield for Automatic Data Processing Inc (ADP) as of Mar 11 2026?

As of Mar 11 2026, Automatic Data Processing Inc (ADP) has a FCF Yield of 4.50%. This means that for every dollar of Automatic Data Processing Inc's market capitalization, the company generates 4.50 cents in free cash flow.

What is the current Forward P/E ratio for Automatic Data Processing Inc (ADP) as of Mar 11 2026?

As of Mar 11 2026, Automatic Data Processing Inc (ADP) has a Forward P/E ratio of 22.63. This means the market is willing to pay $22.63 for every dollar of Automatic Data Processing Inc's expected earnings over the next 12 months.

What is the current Forward P/S ratio for Automatic Data Processing Inc (ADP) as of Mar 11 2026?

As of Mar 11 2026, Automatic Data Processing Inc (ADP) has a Forward P/S ratio of 4.64. This means the market is valuing ADP at $4.64 for every dollar of expected revenue over the next 12 months.

ADP Valuation