Latest Ratios: P/E Ratio 26.7x · EV/EBITDA 20.0x · ROE 72.2%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $121.3B | $89.5B | $126.0B | $98.4B | $91.4B | $88.4B | $85.0B | $64.4B | $72.3B | $59.5B | $46.1B |
| Enterprise Value | $122.3B | $90.5B | $131.8B | $99.2B | $92.7B | $90.5B | $85.8B | $64.9B | $72.7B | $59.3B | $45.4B |
| P/E Ratio → | 26.65 | 20.45 | 30.90 | 26.23 | 26.77 | 30.01 | 32.72 | 26.12 | 31.55 | 31.56 | 26.61 |
| P/S Ratio | 5.45 | 4.08 | 6.13 | 5.12 | 5.07 | 5.36 | 5.67 | 4.42 | 5.10 | 4.46 | 3.73 |
| P/B Ratio | 20.09 | 14.83 | 20.37 | 21.64 | 26.04 | 27.42 | 15.00 | 11.20 | 13.40 | 12.56 | 11.60 |
| P/FCF | 24.34 | 17.06 | 26.42 | 27.37 | 25.13 | 34.74 | 32.86 | 26.73 | 34.10 | 29.09 | 27.87 |
| P/OCF | 22.29 | 16.44 | 25.52 | 23.66 | 21.71 | 28.54 | 27.49 | 21.29 | 26.91 | 23.64 | 21.70 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.12 | 6.41 | 5.16 | 5.15 | 5.49 | 5.72 | 4.45 | 5.13 | 4.45 | 3.66 |
| EV / EBITDA | 20.02 | 19.40 | 22.34 | 18.02 | 18.34 | 20.96 | 22.37 | 17.91 | 21.29 | 20.06 | 16.59 |
| EV / EBIT | 29.99 | 15.44 | 22.89 | 18.93 | 19.75 | 23.26 | 25.08 | 19.72 | 23.17 | 24.86 | 17.37 |
| EV / FCF | — | 17.25 | 27.62 | 27.59 | 25.50 | 35.55 | 33.16 | 26.92 | 34.25 | 29.00 | 27.40 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.2% | 48.2% | 50.8% | 49.9% | 48.9% | 46.9% | 46.5% | 46.0% | 46.7% | 45.4% | 45.6% |
| Operating Margin | 18.6% | 18.6% | 26.3% | 25.7% | 25.0% | 23.1% | 22.2% | 21.5% | 21.2% | 19.3% | 19.5% |
| Net Profit Margin | 20.1% | 20.1% | 19.8% | 19.5% | 18.9% | 17.9% | 17.3% | 16.9% | 16.2% | 12.2% | 14.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 72.2% | 72.2% | 76.0% | 93.1% | 101.3% | 66.3% | 45.5% | 44.2% | 45.2% | 37.2% | 41.0% |
| ROA | 7.6% | 7.6% | 7.6% | 7.1% | 6.0% | 5.3% | 5.9% | 6.1% | 5.7% | 4.3% | 4.3% |
| ROIC | 32.2% | 32.2% | 47.1% | 72.6% | 66.6% | 48.6% | 39.5% | 39.6% | 43.8% | 49.8% | 55.8% |
| ROCE | 32.3% | 32.3% | 50.6% | 56.5% | 55.9% | 40.9% | 33.7% | 34.3% | 34.0% | 32.6% | 31.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.87 | 0.87 | 1.46 | 0.81 | 0.98 | 1.08 | 0.59 | 0.41 | 0.42 | 0.42 | 0.50 |
| Debt / EBITDA | 1.13 | 1.13 | 1.54 | 0.67 | 0.68 | 0.81 | 0.87 | 0.65 | 0.66 | 0.68 | 0.73 |
| Net Debt / Equity | — | 0.17 | 0.92 | 0.17 | 0.39 | 0.64 | 0.14 | 0.08 | 0.06 | -0.04 | -0.20 |
| Net Debt / EBITDA | 0.22 | 0.22 | 0.97 | 0.14 | 0.27 | 0.48 | 0.20 | 0.12 | 0.09 | -0.06 | -0.28 |
| Debt / FCF | — | 0.20 | 1.20 | 0.22 | 0.37 | 0.81 | 0.30 | 0.18 | 0.15 | -0.08 | -0.47 |
| Interest Coverage | 12.77 | 12.77 | 12.63 | 14.32 | 18.22 | 45.08 | 57.30 | 30.72 | 24.14 | 23.23 | 32.64 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.17 | 0.17 | 1.05 | 1.01 | 0.99 | 0.99 | 1.07 | 1.05 | 1.05 | 1.05 | 1.10 |
| Quick Ratio | 0.17 | 0.17 | 1.05 | 1.01 | 0.99 | 0.99 | 1.07 | 1.05 | 1.05 | 1.05 | 1.10 |
| Cash Ratio | 0.08 | 0.08 | 0.19 | 0.07 | 0.05 | 0.03 | 0.07 | 0.06 | 0.06 | 0.07 | 0.09 |
| Asset Turnover | — | 0.35 | 0.39 | 0.35 | 0.35 | 0.26 | 0.31 | 0.37 | 0.34 | 0.34 | 0.33 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 58.56 | 63.54 | 65.16 | 60.99 | 70.14 | 66.34 | 61.08 | 62.81 | 54.34 | 50.23 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.9% | 1.9% | 2.2% | 2.1% | 1.9% | 1.9% | 2.3% | 1.8% | 1.8% | 2.2% |
| Payout Ratio | 59.5% | 59.5% | 58.8% | 58.2% | 55.8% | 56.3% | 60.6% | 59.6% | 56.4% | 65.6% | 57.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.9% | 3.2% | 3.8% | 3.7% | 3.3% | 3.1% | 3.8% | 3.2% | 3.2% | 3.8% |
| FCF Yield | 4.1% | 5.9% | 3.8% | 3.7% | 4.0% | 2.9% | 3.0% | 3.7% | 2.9% | 3.4% | 3.6% |
| Buyback Yield | 1.7% | 2.3% | 1.0% | 1.3% | 1.2% | 2.2% | 1.6% | 1.6% | 1.3% | 1.7% | 2.7% |
| Total Shareholder Yield | 3.9% | 5.3% | 2.9% | 3.5% | 3.3% | 4.1% | 3.5% | 3.8% | 3.1% | 3.5% | 4.9% |
| Shares Outstanding | — | $399M | $409M | $412M | $416M | $421M | $428M | $433M | $438M | $443M | $450M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ADP stock.
Automatic Data Processing, Inc.'s current P/E ratio is 26.7x. The historical average is 24.5x. This places it at the 57th percentile of its historical range.
Automatic Data Processing, Inc.'s current EV/EBITDA is 20.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.6x.
Automatic Data Processing, Inc.'s return on equity (ROE) is 72.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 35.6%.
Based on historical data, Automatic Data Processing, Inc. is trading at a P/E of 26.7x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Automatic Data Processing, Inc.'s current dividend yield is 2.17% with a payout ratio of 59.5%.
Automatic Data Processing, Inc. has 48.2% gross margin and 18.6% operating margin. Operating margin between 10-20% is typical for established companies.
Automatic Data Processing, Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Volatile quarterly leverage and cash conversion
Metrics are mathematically derived from official filings.
Premium Multiples Priced for Durability
According to reported market data, ADP trades at 28.05 trailing P/E and 27.10 EV/EBITDA, a premium that compares with peers PAYX at 24.44 and PAYC at 30.94 and implies the market is pricing in durable compounding rather than near-term acceleration.
The forward P/E of 27.74 sits almost flat to the trailing multiple, which suggests consensus earnings expectations are not implying meaningful growth beyond the current trajectory. The PEG of 2.24 is elevated relative to the 1.15 to 0.89 range of several peers, indicating investors are paying a premium for stability rather than for expansion. Investors should monitor whether the multiple compresses if mid-single-digit revenue growth fails to translate into earnings growth.
Stable Margins Masking Q1 Operating Loss
Based on ADP's reported figures, net margin held between 17.8% and 22.9% across ten quarters, yet operating margin fell to negative 2.4% in 2026Q1, a swing that points to non-recurring items rather than underlying earnings power.
Gross margin stayed in a relatively narrow 45% to 53% band, which supports the view that delivery cost discipline is intact. The divergence between the Q1 2026 operating loss and a 19.6% net margin in the same quarter suggests non-operating income or other adjustments carried reported profitability. Net margin of roughly 20% is therefore the more reliable earnings-power proxy only after normalizing that quarter.
Returns Oscillating Rather Than Compounding
As reported in financial statements, ADP's ROIC ranged from negative 0.7% to 16.8% and ROE from 15.1% to 22.9%, a volatile pattern that does not yet show a clear compounding trend in returns on invested capital.
The ROE range is supported by a thin book equity base, which inflates the ratio relative to economic returns on capital. Peer ROIC of 25.6% at PAYX and 30.7% at PAYC exceeds ADP's typical level, suggesting a structural gap in capital efficiency. The drivers appear to be margin timing more than sustained asset productivity.
Debt Spikes Without Persistent Strain
According to recent SEC filings, ADP's debt-to-equity moved between 0.68 and 1.62 and interest coverage ranged widely, with leverage peaking in 2026Q1 at 1.49 before easing, indicating financing-timing effects rather than a structural deterioration.
Interest coverage stayed above 9x in most quarters, which suggests debt service remains comfortable under reported figures. The 2026Q1 spike in D/EBITDA reflects depressed quarterly EBITDA rather than a sudden rise in obligations, so the ratio may overstate sustained strain. Refinancing risk is not assessable from the supplied data and warrants further investigation.
Ratio Misapplication Risk in Equity Base
Based on reported figures, debt-to-equity looks stretched because book equity of roughly $5B to $6B sits far below retained earnings near $27B, a gap that may reflect heavy treasury stock and makes leverage ratios less informative than cash generation.
Conventional D/E conveys a misleading picture of solvency for a company whose equity has been reduced by repurchases. Price-to-book at 20.34 is similarly distorted and should not be read as a valuation signal on its own. Free cash flow yield and debt service relative to operating cash flow offer a more faithful view of financial capacity.