Automatic Data Processing, Inc. (ADP) P/E Ratio History
Historical price-to-earnings valuation from 1991 to 2026
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ADP Valuation Context
How does the current P/E compare to historical and market benchmarks?
P/E Ratio Analysis
As of May 6, 2026, Automatic Data Processing, Inc. (ADP) trades at a price-to-earnings ratio of 20.8x, with a stock price of $207.20 and trailing twelve-month earnings per share of $10.80.
The current P/E is 29% below its 5-year average of 29.4x. Over the past five years, ADP's P/E has ranged from a low of 18.9x to a high of 38.2x, placing the current valuation at the 5th percentile of its historical range.
Compared to the Industrials sector median P/E of 25.9x, ADP trades at a 20% discount to its sector peers. The sector includes 414 companies with P/E ratios ranging from 0.0x to 185.4x.
The PEG ratio of 1.75 (P/E divided by 10% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, ADP trades roughly in line with the S&P 500 median P/E of 25.2x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our ADP DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
ADP P/E vs Peers
P/E ratio compared to closely matched public peers
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $33B | 20.0 | 2.34 | -2% | |
| $6B | 10.8Lowest | 0.73 | +10% | |
| $7B | 15.6 | 0.58Best | -9% | |
| $6B | 25.5 | 0.90 | +11% | |
| $5B | 17.0 | - | +13% | |
| $12B | 273.4 | - | +863%Best | |
| $108B | 28.4 | 1.95 | +31% | |
| $2B | 12.9 | - | -8% | |
| $4B | 13.8 | - | -26% |
Peers sorted by market capitalization. P/E below peers may indicate undervaluation or lower growth expectations. Consider PEG ratio for growth-adjusted comparison.
ADP Historical P/E Data (1991–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Date | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q3 | $203.18 | $10.73 | 18.9x | -17% | |
| FY2026 Q2 | Wed Dec 31 2025 00:00:00 GM | $257.23 | $10.41 | 24.7x | +8% |
| FY2026 Q1 | $293.50 | $10.14 | 28.9x | +26% | |
| FY2025 Q4 | Mon Jun 30 2025 00:00:00 GM | $308.40 | $9.99 | 30.9x | +35% |
| FY2025 Q3 | Mon Mar 31 2025 00:00:00 GM | $305.53 | $9.78 | 31.2x | +36% |
| FY2025 Q2 | $292.73 | $9.60 | 30.5x | +33% | |
| FY2025 Q1 | Mon Sep 30 2024 00:00:00 GM | $276.73 | $9.37 | 29.5x | +29% |
| FY2024 Q4 | Sun Jun 30 2024 00:00:00 GM | $238.69 | $9.11 | 26.2x | +14% |
| FY2024 Q3 | Sun Mar 31 2024 00:00:00 GM | $249.74 | $8.96 | 27.9x | +22% |
| FY2024 Q2 | Sun Dec 31 2023 00:00:00 GM | $232.97 | $8.59 | 27.1x | +18% |
| FY2024 Q1 | Sat Sep 30 2023 00:00:00 GM | $240.58 | $8.42 | 28.6x | +25% |
| FY2023 Q4 | Fri Jun 30 2023 00:00:00 GM | $219.79 | $8.21 | 26.8x | +17% |
Average P/E for displayed period: 22.9x
Full ADP Stock Analysis
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Start ComparisonADP — Frequently Asked Questions
Quick answers to the most common questions about buying ADP stock.
Is ADP stock overvalued or undervalued?
ADP trades at 20.8x P/E, below its 5-year average of 29.4x. At the 5th percentile of historical range, the stock is priced at a discount to its own history.
How does ADP's valuation compare to peers?
Automatic Data Processing, Inc. P/E of 20.8x compares to sector median of 25.9x. The discount suggests lower growth expectations or higher risk.
What is ADP's PEG ratio?
ADP PEG ratio is 1.75. Between 1-2 suggests valuation aligns with growth. Historical P/E data spans 1991-2026.