Price to Book Value (P/BV)
since 2005
Calculation
Automatic Data Processing Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 4, 2021 | 15.82 | = | 212.00 | ÷ | 13.40 | 13.40 | = | 5,670,100 | ÷ | 423,080,556 | |
| Aug 5, 2020 | 10.07 | = | 134.77 | ÷ | 13.38 | 13.38 | = | 5,752,200 | ÷ | 429,965,405 | |
| Aug 9, 2019 | 13.48 | = | 167.73 | ÷ | 12.44 | 12.44 | = | 5,399,900 | ÷ | 433,942,837 | |
| Aug 3, 2018 | 17.00 | = | 134.25 | ÷ | 7.90 | 7.90 | = | 3,459,600 | ÷ | 438,082,756 | |
| Aug 4, 2017 | 12.45 | = | 111.39 | ÷ | 8.95 | 8.95 | = | 3,977,000 | ÷ | 444,374,752 | |
| Aug 5, 2016 | 9.13 | = | 89.67 | ÷ | 9.82 | 9.82 | = | 4,481,600 | ÷ | 456,176,951 | |
| Aug 7, 2015 | 7.78 | = | 80.29 | ÷ | 10.32 | 10.32 | = | 4,808,500 | ÷ | 465,810,128 | |
| Aug 8, 2014 | 5.85 | = | 81.12 | ÷ | 13.87 | 13.87 | = | 6,670,200 | ÷ | 480,912,107 | |
| Aug 19, 2013 | 5.61 | = | 71.90 | ÷ | 12.82 | 12.82 | = | 6,189,900 | ÷ | 482,823,076 | |
| Aug 20, 2012 | 4.62 | = | 58.36 | ÷ | 12.62 | 12.62 | = | 6,114,000 | ÷ | 484,504,817 | |
| Aug 24, 2011 | 3.97 | = | 48.76 | ÷ | 12.27 | 12.27 | = | 6,010,400 | ÷ | 489,677,633 | |
| Aug 25, 2010 | 3.50 | = | 38.93 | ÷ | 11.14 | 11.14 | = | 5,478,900 | ÷ | 492,022,525 | |
| Aug 28, 2009 | 3.64 | = | 38.56 | ÷ | 10.60 | 10.60 | = | 5,322,600 | ÷ | 502,151,920 | |
| Aug 29, 2008 | 4.44 | = | 44.38 | ÷ | 10.00 | 10.00 | = | 5,087,200 | ÷ | 508,864,299 | |
| Aug 29, 2007 | 4.78 | = | 46.33 | ÷ | 9.69 | 9.69 | = | 5,147,900 | ÷ | 531,060,120 | |
| Aug 30, 2006 | 4.38 | = | 47.41 | ÷ | 10.82 | 10.82 | = | 6,011,600 | ÷ | 555,570,420 | |
| Aug 31, 2005 | 4.28 | = | 42.75 | ÷ | 10.00 | 10.00 | = | 5,783,800 | ÷ | 578,425,694 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Automatic Data Processing Inc. Annual Report.
The financial data indicates a significant long-term expansion in the market valuation of the company relative to its book value between 2005 and 2021. While the share price exhibited a strong overall upward trajectory, the book value per share remained relatively stagnant or experienced periods of decline, leading to a substantial increase in the Price to Book Value (P/BV) ratio.
- Initial Stability Period (2005–2010)
- During this interval, the P/BV ratio remained relatively stable, fluctuating within a narrow range between 3.50 and 4.78. The share price and book value per share moved in approximate correlation, suggesting a valuation closely tied to the company's tangible net asset value.
- Valuation Divergence and Expansion (2011–2018)
- A marked divergence occurred starting in 2011, as the P/BV ratio began a consistent ascent, peaking at 17.00 in 2018. This trend was characterized by a sharp increase in share price coinciding with a contraction in book value per share, which fell from a high of 13.87 in 2014 to 7.90 in 2018. The expansion of the ratio suggests that the market increasingly attributed value to intangible assets, brand equity, or future growth prospects rather than accounting book value.
- Recent Volatility and Recovery (2019–2021)
- The period from 2019 to 2021 was marked by significant volatility. The P/BV ratio experienced a correction, declining from 17.00 to 10.07 by 2020. However, this was followed by a sharp rebound to 15.82 in 2021. This recent surge was primarily driven by a substantial increase in the share price to 212.00, while the book value per share remained nearly flat at 13.40.
Overall, the analysis reveals a fundamental shift in the company's valuation profile. The transition from a P/BV ratio averaging under 5.0 in the first half of the period to levels exceeding 15.0 in later years indicates that the market now values the entity at a significant premium over its historical accounting basis.
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Comparison to Competitors
Automatic Data Processing Inc., P/BV, long-term trends, comparison to competitors
| Automatic Data Processing Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 4, 2021 | 15.82 | 11.06 | 15.94 | 7.83 | 13.68 | 48.66 | 5.90 | 15.71 | 15.16 | 41.57 | 10.48 | 71.88 | 4.73 | 30.36 | 10.50 | 18.38 |
| Aug 5, 2020 | 10.07 | 8.51 | 16.53 | — | 14.90 | 31.25 | 5.24 | 17.71 | 13.11 | 14.01 | 28.60 | 20.61 | 4.48 | 40.91 | 7.57 | 15.54 |
| Aug 9, 2019 | 13.48 | 8.15 | 16.03 | — | 9.51 | 16.83 | 6.04 | 20.00 | 10.30 | 8.59 | — | 12.91 | 7.66 | 31.48 | 5.16 | 21.26 |
| Aug 3, 2018 | 17.00 | 9.44 | 12.76 | — | 12.50 | — | 7.40 | 24.12 | 10.02 | 3.84 | — | 22.92 | 9.93 | 39.03 | 3.68 | 18.62 |
| Aug 4, 2017 | 12.45 | 10.08 | 11.50 | — | 11.49 | — | 8.20 | 26.72 | 7.69 | 3.90 | — | 17.37 | 7.78 | 48.15 | 3.99 | 14.93 |
| Aug 5, 2016 | 9.13 | 9.83 | 7.37 | — | 11.10 | — | 9.30 | 24.96 | 6.08 | 3.49 | — | 16.91 | 9.45 | 37.73 | 2.81 | 12.36 |
| Aug 7, 2015 | 7.78 | 11.33 | 6.35 | — | 4.61 | — | 8.92 | 10.00 | 4.66 | 3.66 | — | 32.11 | 10.57 | 15.42 | 2.20 | 13.98 |
| Aug 8, 2014 | 5.85 | 8.96 | 5.26 | — | 4.06 | — | 13.73 | 7.79 | 3.96 | 3.82 | — | 16.81 | 12.79 | 26.77 | 2.12 | 14.17 |
| Aug 19, 2013 | 5.61 | 10.06 | 4.49 | — | 3.74 | — | 8.37 | 5.28 | 3.36 | 3.13 | — | 12.19 | 11.74 | 24.35 | 2.19 | 17.51 |
| Aug 20, 2012 | 4.62 | 11.05 | 2.84 | — | 4.38 | — | 11.77 | 6.46 | 3.68 | 3.11 | — | 19.49 | 12.73 | 19.86 | 1.93 | — |
| Aug 24, 2011 | 3.97 | 10.33 | 2.66 | — | 7.87 | — | 11.39 | 5.46 | 4.07 | 4.12 | — | — | 12.71 | — | 1.84 | — |
| Aug 25, 2010 | 3.50 | 11.06 | 3.29 | — | 9.33 | — | 8.57 | 5.05 | 4.84 | 3.52 | — | — | 9.19 | — | 1.93 | — |
| Aug 28, 2009 | 3.64 | 9.61 | 3.68 | — | 14.21 | — | 7.26 | 3.50 | 5.36 | 4.29 | — | — | 5.65 | — | 1.71 | — |
| Aug 29, 2008 | 4.44 | 9.15 | 2.34 | — | 10.30 | — | 8.61 | 4.76 | 6.47 | 4.66 | — | — | 15.76 | — | 1.68 | — |
| Aug 29, 2007 | 4.78 | 14.69 | 4.24 | — | 1.49 | — | 5.56 | 4.74 | 33.73 | 5.96 | — | — | 17.53 | — | 2.67 | — |
| Aug 30, 2006 | 4.38 | 13.85 | 4.39 | — | 3.45 | — | 4.96 | 6.56 | 19.86 | 5.28 | — | — | 21.98 | — | 3.34 | — |
| Aug 31, 2005 | 4.28 | 13.33 | 12.48 | — | 2.78 | — | 3.80 | 4.73 | 17.90 | 6.31 | — | — | 10.50 | — | 2.57 | — |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Software & Services)
Automatic Data Processing Inc., P/BV, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Aug 4, 2021 | 15.82 | 13.51 |
| Aug 5, 2020 | 10.07 | 11.67 |
| Aug 9, 2019 | 13.48 | 10.06 |
| Aug 3, 2018 | 17.00 | 8.75 |
| Aug 4, 2017 | 12.45 | 7.21 |
| Aug 5, 2016 | 9.13 | 6.29 |
| Aug 7, 2015 | 7.78 | 5.39 |
| Aug 8, 2014 | 5.85 | 5.16 |
| Aug 19, 2013 | 5.61 | 4.47 |
| Aug 20, 2012 | 4.62 | 4.89 |
| Aug 24, 2011 | 3.97 | 5.40 |
| Aug 25, 2010 | 3.50 | 5.32 |
| Aug 28, 2009 | 3.64 | 5.46 |
| Aug 29, 2008 | 4.44 | 6.11 |
| Aug 29, 2007 | 4.78 | 15.50 |
| Aug 30, 2006 | 4.38 | 11.43 |
| Aug 31, 2005 | 4.28 | 11.13 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Information Technology)
Automatic Data Processing Inc., P/BV, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Aug 4, 2021 | 15.82 | 12.37 |
| Aug 5, 2020 | 10.07 | 10.94 |
| Aug 9, 2019 | 13.48 | 8.41 |
| Aug 3, 2018 | 17.00 | 7.00 |
| Aug 4, 2017 | 12.45 | 5.46 |
| Aug 5, 2016 | 9.13 | 4.53 |
| Aug 7, 2015 | 7.78 | 4.30 |
| Aug 8, 2014 | 5.85 | 4.36 |
| Aug 19, 2013 | 5.61 | 3.50 |
| Aug 20, 2012 | 4.62 | 3.75 |
| Aug 24, 2011 | 3.97 | 3.98 |
| Aug 25, 2010 | 3.50 | 4.16 |
| Aug 28, 2009 | 3.64 | 4.31 |
| Aug 29, 2008 | 4.44 | 4.00 |
| Aug 29, 2007 | 4.78 | 8.64 |
| Aug 30, 2006 | 4.38 | 7.24 |
| Aug 31, 2005 | 4.28 | 7.40 |
Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).