Stock Analysis on Net
Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

Common Stock Valuation Ratios (Price Multiples)
Quarterly Data

Beginner level

Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Historical Valuation Ratios (Summary)

Automatic Data Processing Inc., historical price multiples (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Price to earnings (P/E) 23.49 23.85 30.04 29.56 31.75 36.20 33.56 35.76 36.29 31.06 30.98 28.71 28.56 25.34 25.24 26.44 27.41 25.46 24.99 26.85 25.75
Price to operating profit (P/OP) 18.44 18.74 23.46 22.74 24.07 23.79 21.71 23.45 23.42 23.30 22.77 21.57 21.27 18.72 18.31 17.88 18.67 18.50 18.24 19.62 18.57
Price to sales (P/S) 3.97 4.10 5.10 4.88 5.13 4.98 4.40 4.55 4.41 4.22 4.17 4.04 4.00 3.63 3.55 3.40 3.51 3.44 3.34 3.62 3.42
Price to book value (P/BV) 10.07 10.99 13.79 13.07 13.48 13.29 12.79 13.18 17.00 13.71 13.58 12.83 12.45 10.81 11.21 9.48 9.13 8.75 8.93 8.66 7.78 7.74 7.54 6.53

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Automatic Data Processing Inc.’s P/E ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Automatic Data Processing Inc.’s P/OP ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Automatic Data Processing Inc.’s P/S ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Automatic Data Processing Inc.’s P/BV ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Price to Earnings (P/E)

Automatic Data Processing Inc., historical P/E calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
No. shares of common stock outstanding1 429,965,405 429,774,376 431,754,252 432,698,089 433,942,837 435,228,237 435,629,656 437,732,499 438,082,756 440,522,324 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801
Selected Financial Data (US$)
Net earnings (in thousands) 411,600  820,900  651,600  582,400  475,500  753,700  558,200  505,400  108,700  643,100  467,500  401,500  265,900  587,900  510,900  368,700  282,000  532,500  341,400  336,600  336,200  489,600  331,500  295,200 
Earnings per share (EPS)2 5.74 5.89 5.71 5.48 5.28 4.43 4.17 3.94 3.70 4.04 3.89 3.98 3.90 3.91 3.77 3.38 3.27 3.40 3.29 3.24 3.12 0.00 0.00 0.00
Share price1, 3 134.77 140.42 171.39 161.88 167.73 160.19 139.84 140.91 134.25 125.36 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95
Valuation Ratio
P/E ratio4 23.49 23.85 30.04 29.56 31.75 36.20 33.56 35.76 36.29 31.06 30.98 28.71 28.56 25.34 25.24 26.44 27.41 25.46 24.99 26.85 25.75
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 27.95 20.33 27.24 24.58 24.95 25.00 21.74 24.10 26.63 26.94 27.54 26.18 21.77 20.32 17.67 18.07 20.28 20.10 22.10 22.75 21.45 20.23 19.47

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Data adjusted for splits and stock dividends.

2 Q4 2020 Calculation
EPS = (Net earningsQ4 2020 + Net earningsQ3 2020 + Net earningsQ2 2020 + Net earningsQ1 2020) ÷ No. shares of common stock outstanding
= (411,600,000 + 820,900,000 + 651,600,000 + 582,400,000) ÷ 429,965,405 = 5.74

3 Closing price as at the filing date of Automatic Data Processing Inc.’s Quarterly or Annual Report.

4 Q4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 134.77 ÷ 5.74 = 23.49

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Automatic Data Processing Inc.’s P/E ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Price to Operating Profit (P/OP)

Automatic Data Processing Inc., historical P/OP calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
No. shares of common stock outstanding1 429,965,405 429,774,376 431,754,252 432,698,089 433,942,837 435,228,237 435,629,656 437,732,499 438,082,756 440,522,324 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801
Selected Financial Data (US$)
Operating income (in thousands) 544,100  1,052,100  821,100  724,400  623,400  985,200  747,000  668,800  529,700  860,500  571,500  550,000  387,700  834,800  578,700  525,600  429,500  801,500  497,300  462,200  367,600  732,800  481,800  431,800 
Operating profit per share2 7.31 7.49 7.31 7.12 6.97 6.73 6.44 6.01 5.73 5.38 5.29 5.30 5.24 5.29 5.20 5.00 4.80 4.67 4.50 4.43 4.32 0.00 0.00 0.00
Share price1, 3 134.77 140.42 171.39 161.88 167.73 160.19 139.84 140.91 134.25 125.36 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95
Valuation Ratio
P/OP ratio4 18.44 18.74 23.46 22.74 24.07 23.79 21.71 23.45 23.42 23.30 22.77 21.57 21.27 18.72 18.31 17.88 18.67 18.50 18.24 19.62 18.57
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 21.16 15.44 20.55 18.63 18.87 18.37 15.30 16.75 18.56 19.61 20.51 19.47 17.21 15.57 15.43 15.44 16.28 16.29 15.04 15.66 14.63 13.77 13.37

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Data adjusted for splits and stock dividends.

2 Q4 2020 Calculation
Operating profit per share = (Operating incomeQ4 2020 + Operating incomeQ3 2020 + Operating incomeQ2 2020 + Operating incomeQ1 2020) ÷ No. shares of common stock outstanding
= (544,100,000 + 1,052,100,000 + 821,100,000 + 724,400,000) ÷ 429,965,405 = 7.31

3 Closing price as at the filing date of Automatic Data Processing Inc.’s Quarterly or Annual Report.

4 Q4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 134.77 ÷ 7.31 = 18.44

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Automatic Data Processing Inc.’s P/OP ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Price to Sales (P/S)

Automatic Data Processing Inc., historical P/S calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
No. shares of common stock outstanding1 429,965,405 429,774,376 431,754,252 432,698,089 433,942,837 435,228,237 435,629,656 437,732,499 438,082,756 440,522,324 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801
Selected Financial Data (US$)
Revenues (in thousands) 3,376,800  4,047,800  3,669,500  3,495,700  3,498,700  3,847,400  3,505,900  3,323,200  3,318,600  3,693,000  3,235,400  3,078,800  3,064,800  3,410,800  2,987,300  2,916,900  2,898,200  3,248,600  2,807,000  2,714,000  2,694,500  3,024,300  2,653,600  2,566,100 
Sales per share2 33.93 34.23 33.61 33.16 32.67 32.16 31.77 31.00 30.42 29.67 28.85 28.28 27.86 27.30 26.85 26.31 25.58 25.17 24.57 24.04 23.48 0.00 0.00 0.00
Share price1, 3 134.77 140.42 171.39 161.88 167.73 160.19 139.84 140.91 134.25 125.36 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95
Valuation Ratio
P/S ratio4 3.97 4.10 5.10 4.88 5.13 4.98 4.40 4.55 4.41 4.22 4.17 4.04 4.00 3.63 3.55 3.40 3.51 3.44 3.34 3.62 3.42
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 3.11 2.26 3.01 2.72 2.73 2.63 2.17 2.35 2.60 2.47 2.60 2.45 2.16 2.17 2.15 2.13 2.24 2.21 2.03 2.11 1.97 1.88 1.81

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Data adjusted for splits and stock dividends.

2 Q4 2020 Calculation
Sales per share = (RevenuesQ4 2020 + RevenuesQ3 2020 + RevenuesQ2 2020 + RevenuesQ1 2020) ÷ No. shares of common stock outstanding
= (3,376,800,000 + 4,047,800,000 + 3,669,500,000 + 3,495,700,000) ÷ 429,965,405 = 33.93

3 Closing price as at the filing date of Automatic Data Processing Inc.’s Quarterly or Annual Report.

4 Q4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 134.77 ÷ 33.93 = 3.97

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Automatic Data Processing Inc.’s P/S ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Price to Book Value (P/BV)

Automatic Data Processing Inc., historical P/BV calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
No. shares of common stock outstanding1 429,965,405 429,774,376 431,754,252 432,698,089 433,942,837 435,228,237 435,629,656 437,732,499 438,082,756 440,522,324 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 5,752,200  5,490,700  5,364,400  5,360,700  5,399,900  5,246,200  4,763,900  4,678,800  3,459,600  4,029,200  3,931,200  3,953,400  3,977,000  4,103,100  3,815,100  4,250,100  4,481,600  4,503,200  4,206,200  4,630,200  4,808,500  5,178,100  5,492,200  5,827,300 
Book value per share (BVPS)2 13.38 12.78 12.42 12.39 12.44 12.05 10.94 10.69 7.90 9.15 8.87 8.91 8.95 9.17 8.50 9.42 9.82 9.89 9.19 10.04 10.32 11.03 11.56 12.09
Share price1, 3 134.77 140.42 171.39 161.88 167.73 160.19 139.84 140.91 134.25 125.36 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95
Valuation Ratio
P/BV ratio4 10.07 10.99 13.79 13.07 13.48 13.29 12.79 13.18 17.00 13.71 13.58 12.83 12.45 10.81 11.21 9.48 9.13 8.75 8.93 8.66 7.78 7.74 7.54 6.53
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 8.64 6.53 8.73 8.15 8.50 8.38 7.22 9.44 10.77 9.99 10.78 10.08 9.55 9.72 10.24 9.83 10.76 10.85 11.39 11.33 10.95 10.27 10.73

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Data adjusted for splits and stock dividends.

2 Q4 2020 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 5,752,200,000 ÷ 429,965,405 = 13.38

3 Closing price as at the filing date of Automatic Data Processing Inc.’s Quarterly or Annual Report.

4 Q4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 134.77 ÷ 13.38 = 10.07

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Automatic Data Processing Inc.’s P/BV ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.