Automatic Data Processing, Inc. (ADP) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Staffing & Employment Services
EV/EBITDA
↓
15.11
↓-26% vs avg
5yr avg: 20.41
30Y Low6.7·High22.4
P/FCF
↓
17.49
↓-40% vs avg
5yr avg: 29.30
30Y Low11.3·High57.2
P/B Ratio
↑
13.69
↓-38% vs avg
5yr avg: 22.09
30Y Low3.0·High27.4
ROE
↑
76.0%
-1% vs avg
5yr avg: 76.5%
30Y Low17%·High101%
Debt/EBITDA
↑
1.54
↑+68% vs avg
5yr avg: 0.91
30Y Low0.0·High1.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ADP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Automatic Data Processing, Inc. trades at 20.8x earnings, 29% below its 5-year average of 29.3x, sitting at the 30th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a discount of 20%. On a free-cash-flow basis, the stock trades at 17.5x P/FCF, 40% below the 5-year average of 29.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $83.4B | $126.0B | $98.4B | $91.4B | $88.4B | $85.0B | $64.4B | $72.3B | $59.5B | $46.1B | $42.2B |
| Enterprise Value | $89.1B | $131.8B | $99.2B | $92.7B | $90.5B | $85.8B | $64.9B | $72.7B | $59.3B | $45.4B | $41.0B |
| P/E Ratio → | 20.76 | 30.90 | 26.23 | 26.77 | 30.01 | 32.72 | 26.12 | 31.55 | 31.56 | 26.61 | 28.28 |
| P/S Ratio | 4.06 | 6.13 | 5.12 | 5.07 | 5.36 | 5.67 | 4.42 | 5.10 | 4.46 | 3.73 | 3.61 |
| P/B Ratio | 13.69 | 20.37 | 21.64 | 26.04 | 27.42 | 15.00 | 11.20 | 13.40 | 12.56 | 11.60 | 9.41 |
| P/FCF | 17.49 | 26.42 | 27.37 | 25.13 | 34.74 | 32.86 | 26.73 | 34.10 | 29.09 | 27.87 | 28.62 |
| P/OCF | 16.89 | 25.52 | 23.66 | 21.71 | 28.54 | 27.49 | 21.29 | 26.91 | 23.64 | 21.70 | 22.68 |
P/E links to full P/E history page with 30-year chart
ADP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Automatic Data Processing, Inc.'s enterprise value stands at 15.1x EBITDA, 26% below its 5-year average of 20.4x. The Industrials sector median is 13.9x, placing the stock at a 9% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.41 | 5.16 | 5.15 | 5.49 | 5.72 | 4.45 | 5.13 | 4.45 | 3.66 | 3.51 |
| EV / EBITDA | 15.11 | 22.34 | 18.02 | 18.34 | 20.96 | 22.37 | 17.91 | 21.29 | 20.06 | 16.59 | 16.16 |
| EV / EBIT | 16.47 | 22.89 | 18.93 | 19.75 | 23.26 | 25.08 | 19.72 | 23.17 | 24.86 | 17.37 | 17.89 |
| EV / FCF | — | 27.62 | 27.59 | 25.50 | 35.55 | 33.16 | 26.92 | 34.25 | 29.00 | 27.40 | 27.81 |
ADP Profitability
Margins and return-on-capital ratios measuring operating efficiency
Automatic Data Processing, Inc. earns an operating margin of 26.3%, significantly above the Industrials sector average of 4.9%. Operating margins have expanded from 25.0% to 26.3% over the past 3 years, signaling improving operational efficiency. Return on equity of 76.0% is exceptionally high — well above the sector median of 8.2%. ROIC of 47.1% represents excellent returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 50.8% | 50.8% | 49.9% | 48.9% | 46.9% | 46.5% | 46.0% | 46.7% | 45.4% | 45.6% | 45.9% |
| Operating Margin | 26.3% | 26.3% | 25.7% | 25.0% | 23.1% | 22.2% | 21.5% | 21.2% | 19.3% | 19.5% | 19.3% |
| Net Profit Margin | 19.8% | 19.8% | 19.5% | 18.9% | 17.9% | 17.3% | 16.9% | 16.2% | 12.2% | 14.0% | 12.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 76.0% | 76.0% | 93.1% | 101.3% | 66.3% | 45.5% | 44.2% | 45.2% | 37.2% | 41.0% | 32.1% |
| ROA | 7.6% | 7.6% | 7.1% | 6.0% | 5.3% | 5.9% | 6.1% | 5.7% | 4.3% | 4.3% | 3.9% |
| ROIC | 47.1% | 47.1% | 72.6% | 66.6% | 48.6% | 39.5% | 39.6% | 43.8% | 49.8% | 55.8% | 52.1% |
| ROCE | 50.6% | 50.6% | 56.5% | 55.9% | 40.9% | 33.7% | 34.3% | 34.0% | 32.6% | 31.8% | 32.5% |
ADP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Automatic Data Processing, Inc. carries a Debt/EBITDA ratio of 1.5x, which is manageable (51% below the sector average of 3.2x). Net debt stands at $5.7B ($9.1B total debt minus $3.3B cash). Interest coverage of 12.6x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.46 | 1.46 | 0.81 | 0.98 | 1.08 | 0.59 | 0.41 | 0.42 | 0.42 | 0.50 | 0.45 |
| Debt / EBITDA | 1.54 | 1.54 | 0.67 | 0.68 | 0.81 | 0.87 | 0.65 | 0.66 | 0.68 | 0.73 | 0.79 |
| Net Debt / Equity | — | 0.92 | 0.17 | 0.39 | 0.64 | 0.14 | 0.08 | 0.06 | -0.04 | -0.20 | -0.26 |
| Net Debt / EBITDA | 0.97 | 0.97 | 0.14 | 0.27 | 0.48 | 0.20 | 0.12 | 0.09 | -0.06 | -0.28 | -0.47 |
| Debt / FCF | — | 1.20 | 0.22 | 0.37 | 0.81 | 0.30 | 0.18 | 0.15 | -0.08 | -0.47 | -0.80 |
| Interest Coverage | 12.63 | 12.63 | 14.32 | 18.22 | 45.08 | 57.30 | 30.72 | 24.14 | 23.23 | 32.64 | 40.76 |
ADP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.05x means Automatic Data Processing, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.99x to 1.05x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.05 | 1.05 | 1.01 | 0.99 | 0.99 | 1.07 | 1.05 | 1.05 | 1.05 | 1.10 | 1.10 |
| Quick Ratio | 1.05 | 1.05 | 1.01 | 0.99 | 0.99 | 1.07 | 1.05 | 1.05 | 1.05 | 1.10 | 1.10 |
| Cash Ratio | 0.19 | 0.19 | 0.07 | 0.05 | 0.03 | 0.07 | 0.06 | 0.06 | 0.07 | 0.09 | 0.09 |
| Asset Turnover | — | 0.39 | 0.35 | 0.35 | 0.26 | 0.31 | 0.37 | 0.34 | 0.34 | 0.33 | 0.27 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 63.54 | 65.16 | 60.99 | 70.14 | 66.34 | 61.08 | 62.81 | 54.34 | 50.23 | 54.52 |
ADP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Automatic Data Processing, Inc. returns 4.4% to shareholders annually — split between a 2.8% dividend yield and 1.5% buyback yield. A payout ratio of 58.8% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | 1.9% | 2.2% | 2.1% | 1.9% | 1.9% | 2.3% | 1.8% | 1.8% | 2.2% | 2.2% |
| Payout Ratio | 58.8% | 58.8% | 58.2% | 55.8% | 56.3% | 60.6% | 59.6% | 56.4% | 65.6% | 57.4% | 63.2% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 3.2% | 3.8% | 3.7% | 3.3% | 3.1% | 3.8% | 3.2% | 3.2% | 3.8% | 3.5% |
| FCF Yield | 5.7% | 3.8% | 3.7% | 4.0% | 2.9% | 3.0% | 3.7% | 2.9% | 3.4% | 3.6% | 3.5% |
| Buyback Yield | 1.5% | 1.0% | 1.3% | 1.2% | 2.2% | 1.6% | 1.6% | 1.3% | 1.7% | 2.7% | 2.7% |
| Total Shareholder Yield | 4.4% | 2.9% | 3.5% | 3.3% | 4.1% | 3.5% | 3.8% | 3.1% | 3.5% | 4.9% | 5.0% |
| Shares Outstanding | — | $409M | $412M | $416M | $421M | $428M | $433M | $438M | $443M | $450M | $459M |
Peer Comparison
Compare ADP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ADPYou | $83B | 20.8 | 15.1 | 17.5 | 50.8% | 26.3% | 76.0% | 47.1% | 1.5 |
 PAYX | $33B | 20.0 | 15.0 | 18.6 | 72.4% | 39.6% | 41.8% | 30.9% | 2.1 |
 G | $6B | 10.8 | 7.8 | 7.8 | 35.6% | 15.0% | 22.4% | 17.2% | 2.1 |
 PAYC | $7B | 15.6 | 8.9 | 16.8 | 78.6% | 27.6% | 27.4% | 30.7% | 0.2 |
 PCTY | $6B | 25.5 | 13.2 | 16.1 | 68.8% | 19.1% | 20.0% | 26.2% | 0.5 |
 WEX | $5B | 17.0 | 8.9 | 15.9 | 54.9% | 25.4% | 22.3% | 9.6% | 4.8 |
 HUBS | $12B | 273.4 | 66.6 | 17.1 | 83.8% | 0.4% | 2.3% | 0.4% | 2.8 |
 INTU | $108B | 28.4 | 19.6 | 17.8 | 80.8% | 26.1% | 20.3% | 16.5% | 1.2 |
 TNET | $2B | 12.9 | 2.5 | 6.2 | 17.4% | 5.3% | 252.0% | — | 2.8 |
 INSW | $4B | 13.8 | 10.0 | 111.2 | 42.3% | 36.3% | 16.0% | 9.4% | 1.2 |
 NSP | $1B | -159.7 | 25.4 | — | 13.2% | -0.1% | -9.8% | — | 12.4 |
| Industrials Median | — | 25.9 | 13.9 | 20.6 | 32.8% | 4.9% | 8.2% | 6.3% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonADP — Frequently Asked Questions
Quick answers to the most common questions about buying ADP stock.
What is Automatic Data Processing, Inc.'s P/E ratio?
Automatic Data Processing, Inc.'s current P/E ratio is 20.8x. The historical average is 24.5x. This places it at the 30th percentile of its historical range.
What is Automatic Data Processing, Inc.'s EV/EBITDA?
Automatic Data Processing, Inc.'s current EV/EBITDA is 15.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.3x.
What is Automatic Data Processing, Inc.'s ROE?
Automatic Data Processing, Inc.'s return on equity (ROE) is 76.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 33.8%.
Is ADP stock overvalued?
Based on historical data, Automatic Data Processing, Inc. is trading at a P/E of 20.8x. This is at the 30th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Automatic Data Processing, Inc.'s dividend yield?
Automatic Data Processing, Inc.'s current dividend yield is 2.83% with a payout ratio of 58.8%.
What are Automatic Data Processing, Inc.'s profit margins?
Automatic Data Processing, Inc. has 50.8% gross margin and 26.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Automatic Data Processing, Inc. have?
Automatic Data Processing, Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.