Price to Earnings (P/E)
since 2005
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Calculation
Automatic Data Processing Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 4, 2021 | = | ÷ | = | ÷ | |||||||
| Aug 5, 2020 | = | ÷ | = | ÷ | |||||||
| Aug 9, 2019 | = | ÷ | = | ÷ | |||||||
| Aug 3, 2018 | = | ÷ | = | ÷ | |||||||
| Aug 4, 2017 | = | ÷ | = | ÷ | |||||||
| Aug 5, 2016 | = | ÷ | = | ÷ | |||||||
| Aug 7, 2015 | = | ÷ | = | ÷ | |||||||
| Aug 8, 2014 | = | ÷ | = | ÷ | |||||||
| Aug 19, 2013 | = | ÷ | = | ÷ | |||||||
| Aug 20, 2012 | = | ÷ | = | ÷ | |||||||
| Aug 24, 2011 | = | ÷ | = | ÷ | |||||||
| Aug 25, 2010 | = | ÷ | = | ÷ | |||||||
| Aug 28, 2009 | = | ÷ | = | ÷ | |||||||
| Aug 29, 2008 | = | ÷ | = | ÷ | |||||||
| Aug 29, 2007 | = | ÷ | = | ÷ | |||||||
| Aug 30, 2006 | = | ÷ | = | ÷ | |||||||
| Aug 31, 2005 | = | ÷ | = | ÷ |
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 analysis of the annual financial data reveals several notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed period.
- Share Price
-
The share price exhibited moderate fluctuations in the initial years, starting at $42.75 in 2005, with minor decreases and increases until 2010 when it remained relatively stable around the high $30 range. From 2011 onwards, the share price showed a consistent upward trajectory, increasing substantially from $48.76 to peak at $167.73 in 2019. There was a decline to $134.77 in 2020, likely reflecting broader market impacts, before recovering strongly to $212 by 2021, indicating significant investor confidence and growth potential.
- Earnings Per Share (EPS)
-
The EPS numbers show consistent growth over the period with minor short-term variability. EPS rose from $1.82 in 2005 to $2.91 in 2013, followed by a steady increase reaching $3.9 in 2017. Although there was a slight dip to $3.7 in 2018, EPS surged notably to $5.28 in 2019, maintaining an upward trend through 2020 and 2021 at $5.74 and $6.14 respectively. This steady improvement in EPS reflects ongoing profitability enhancement and operational efficiency.
- Price-to-Earnings Ratio (P/E)
-
The P/E ratio demonstrated variability throughout the years, starting at 23.43 in 2005 and declining to a low of 14.53 by 2009, suggesting increasing earnings relative to price or possibly undervaluation during that period. From 2010 onward, the P/E ratio progressively increased, peaking at 36.29 in 2018, indicating increased investor willingness to pay for earnings growth. However, this was followed by a dip to 23.49 in 2020 and a subsequent rise to 34.52 in 2021, reflecting market volatility coupled with optimistic future earnings expectations.
Overall, the data depicts a company experiencing strong growth in fundamental earnings, accompanied by increasing share prices over time. The rising P/E ratio in the later years suggests heightened market confidence and possibly elevated valuation levels relative to earnings. Short-term fluctuations in all three metrics correspond with broader economic conditions but do not detract from the general positive growth trend.
Comparison to Competitors
Automatic Data Processing Inc., P/E, long-term trends, comparison to competitors
| Automatic Data Processing Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 | ||||||||||||||||
| Aug 5, 2020 | ||||||||||||||||
| Aug 9, 2019 | ||||||||||||||||
| Aug 3, 2018 | ||||||||||||||||
| Aug 4, 2017 | ||||||||||||||||
| Aug 5, 2016 | ||||||||||||||||
| Aug 7, 2015 | ||||||||||||||||
| Aug 8, 2014 | ||||||||||||||||
| Aug 19, 2013 | ||||||||||||||||
| Aug 20, 2012 | ||||||||||||||||
| Aug 24, 2011 | ||||||||||||||||
| Aug 25, 2010 | ||||||||||||||||
| Aug 28, 2009 | ||||||||||||||||
| Aug 29, 2008 | ||||||||||||||||
| Aug 29, 2007 | ||||||||||||||||
| Aug 30, 2006 | ||||||||||||||||
| Aug 31, 2005 |
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/E, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Aug 4, 2021 | ||
| Aug 5, 2020 | ||
| Aug 9, 2019 | ||
| Aug 3, 2018 | ||
| Aug 4, 2017 | ||
| Aug 5, 2016 | ||
| Aug 7, 2015 | ||
| Aug 8, 2014 | ||
| Aug 19, 2013 | ||
| Aug 20, 2012 | ||
| Aug 24, 2011 | ||
| Aug 25, 2010 | ||
| Aug 28, 2009 | ||
| Aug 29, 2008 | ||
| Aug 29, 2007 | ||
| Aug 30, 2006 | ||
| Aug 31, 2005 |
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/E, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Aug 4, 2021 | ||
| Aug 5, 2020 | ||
| Aug 9, 2019 | ||
| Aug 3, 2018 | ||
| Aug 4, 2017 | ||
| Aug 5, 2016 | ||
| Aug 7, 2015 | ||
| Aug 8, 2014 | ||
| Aug 19, 2013 | ||
| Aug 20, 2012 | ||
| Aug 24, 2011 | ||
| Aug 25, 2010 | ||
| Aug 28, 2009 | ||
| Aug 29, 2008 | ||
| Aug 29, 2007 | ||
| Aug 30, 2006 | ||
| Aug 31, 2005 |
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).