2. Automatic Data Processing Inc.
  3. Common Stock Valuation Ratios
  4. Quarterly Data
 

Automatic Data Processing Inc. (ADP)

Common Stock Valuation Ratios (Price Multiples) Quarterly Data

Difficulty: Beginner

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)

 
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 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
Price to earnings (P/E) 30.98 28.71 28.56 25.34 25.24 26.44 27.41 25.46 24.99 26.85 25.75 28.54 28.82 25.67 25.73 25.73 25.03 25.37 24.69 23.37 20.95 20.02 20.36 – – –
Price to operating profit (P/OP) 22.77 21.57 21.27 18.72 18.31 17.88 18.67 18.50 18.24 19.62 18.57 19.28 19.63 17.60 17.67 17.66 17.11 17.82 17.38 16.61 14.85 14.13 14.43 – – –
Price to sales (P/S) 4.17 4.04 4.00 3.63 3.55 3.40 3.51 3.44 3.34 3.62 3.42 3.55 3.57 3.19 3.20 3.13 3.02 3.15 3.07 3.02 2.69 2.58 2.65 – – –
Price to book value (P/BV) 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 5.85 5.66 5.66 5.85 5.61 5.12 4.61 4.43 4.62 4.06 4.35 4.19
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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.
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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.
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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.
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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

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Price to Earnings (P/E)

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

 
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 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
No. shares of common stock outstanding1 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801 480,912,107 482,102,232 481,825,525 481,425,397 482,823,076 485,222,417 485,017,174 485,473,927 484,504,817 489,085,110 490,575,881 488,698,027
Selected Financial Data (USD $)
Net earnings (in thousands) 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  288,700  521,600  377,000  328,600  226,900  482,700  390,900  305,300  258,400  452,400  375,000  302,700 
Earnings per share (EPS)3 3.89 3.98 3.90 3.91 3.77 3.38 3.27 3.40 3.29 3.24 3.12 2.99 3.02 3.08 3.15 3.02 2.94 2.97 2.91 2.96 2.90 2.87 2.87 – – –
Share price1, 2 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95 81.12 77.62 73.53 75.31 71.90 69.23 60.77 57.37 58.36 53.56 54.87 51.63
P/E ratio4 30.98 28.71 28.56 25.34 25.24 26.44 27.41 25.46 24.99 26.85 25.75 28.54 28.82 25.67 25.73 25.73 25.03 25.37 24.69 23.37 20.95 20.02 20.36 – – –

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Automatic Data Processing Inc.'s Quarterly or Annual Report.

Q2 2018 Calculations

3 EPS = (Net earningsQ2 2018 + Net earningsQ1 2018 + Net earningsQ4 2017 + Net earningsQ3 2017) ÷ No. shares of common stock outstanding
= (467,500,000 + 401,500,000 + 265,900,000 + 587,900,000) ÷ 443,269,657 = 3.89

4 P/E ratio = Share price ÷ EPS
= 120.42 ÷ 3.89 = 30.98

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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

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Price to Operating Profit (P/OP)

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

 
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 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
No. shares of common stock outstanding1 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801 480,912,107 482,102,232 481,825,525 481,425,397 482,823,076 485,222,417 485,017,174 485,473,927 484,504,817 489,085,110 490,575,881 488,698,027
Selected Financial Data (USD $)
Operating income (in thousands) 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  434,000  762,400  534,800  476,600  344,800  714,000  498,800  439,600  369,900  676,300  485,600  427,200 
Operating profit per share3 5.29 5.30 5.24 5.29 5.20 5.00 4.80 4.67 4.50 4.43 4.32 4.43 4.44 4.49 4.59 4.39 4.30 4.23 4.14 4.17 4.09 4.06 4.04 – – –
Share price1, 2 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95 81.12 77.62 73.53 75.31 71.90 69.23 60.77 57.37 58.36 53.56 54.87 51.63
P/OP ratio4 22.77 21.57 21.27 18.72 18.31 17.88 18.67 18.50 18.24 19.62 18.57 19.28 19.63 17.60 17.67 17.66 17.11 17.82 17.38 16.61 14.85 14.13 14.43 – – –

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Automatic Data Processing Inc.'s Quarterly or Annual Report.

Q2 2018 Calculations

3 Operating profit per share = (Operating incomeQ2 2018 + Operating incomeQ1 2018 + Operating incomeQ4 2017 + Operating incomeQ3 2017) ÷ No. shares of common stock outstanding
= (571,500,000 + 550,000,000 + 387,700,000 + 834,800,000) ÷ 443,269,657 = 5.29

4 P/OP ratio = Share price ÷ Operating profit per share
= 120.42 ÷ 5.29 = 22.77

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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

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Price to Sales (P/S)

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

 
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 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
No. shares of common stock outstanding1 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801 480,912,107 482,102,232 481,825,525 481,425,397 482,823,076 485,222,417 485,017,174 485,473,927 484,504,817 489,085,110 490,575,881 488,698,027
Selected Financial Data (USD $)
Revenues (in thousands) 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  3,064,100  3,320,000  2,982,800  2,839,600  2,810,500  3,114,300  2,747,800  2,637,500  2,636,600  2,923,100  2,583,000  2,522,500 
Sales per share3 28.85 28.28 27.86 27.30 26.85 26.31 25.58 25.17 24.57 24.04 23.48 24.08 24.42 24.75 25.38 24.79 24.38 23.91 23.42 22.95 22.57 22.21 22.01 – – –
Share price1, 2 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95 81.12 77.62 73.53 75.31 71.90 69.23 60.77 57.37 58.36 53.56 54.87 51.63
P/S ratio4 4.17 4.04 4.00 3.63 3.55 3.40 3.51 3.44 3.34 3.62 3.42 3.55 3.57 3.19 3.20 3.13 3.02 3.15 3.07 3.02 2.69 2.58 2.65 – – –

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Automatic Data Processing Inc.'s Quarterly or Annual Report.

Q2 2018 Calculations

3 Sales per share = (RevenuesQ2 2018 + RevenuesQ1 2018 + RevenuesQ4 2017 + RevenuesQ3 2017) ÷ No. shares of common stock outstanding
= (3,235,400,000 + 3,078,800,000 + 3,064,800,000 + 3,410,800,000) ÷ 443,269,657 = 28.85

4 P/S ratio = Share price ÷ Sales per share
= 120.42 ÷ 28.85 = 4.17

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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

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Price to Book Value (P/BV)

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

 
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 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
No. shares of common stock outstanding1 443,269,657 443,489,730 444,374,752 447,410,344 448,902,582 451,173,217 456,176,951 455,534,803 457,451,131 461,206,624 465,810,128 469,524,030 475,152,112 482,056,801 480,912,107 482,102,232 481,825,525 481,425,397 482,823,076 485,222,417 485,017,174 485,473,927 484,504,817 489,085,110 490,575,881 488,698,027
Selected Financial Data (USD $)
Stockholders' equity (in thousands) 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  6,670,200  6,616,100  6,258,500  6,192,800  6,189,900  6,561,100  6,395,300  6,292,700  6,114,000  6,456,600  6,182,400  6,019,200 
Book value per share (BVPS)3 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 13.87 13.72 12.99 12.86 12.82 13.52 13.19 12.96 12.62 13.20 12.60 12.32
Share price1, 2 120.42 114.34 111.39 99.10 95.25 89.33 89.67 86.45 82.15 86.98 80.29 85.41 87.17 78.95 81.12 77.62 73.53 75.31 71.90 69.23 60.77 57.37 58.36 53.56 54.87 51.63
P/BV ratio4 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 5.85 5.66 5.66 5.85 5.61 5.12 4.61 4.43 4.62 4.06 4.35 4.19

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Automatic Data Processing Inc.'s Quarterly or Annual Report.

Q2 2018 Calculations

3 BVPS = Stockholders' equity ÷ No. shares of common stock outstanding
= 3,931,200,000 ÷ 443,269,657 = 8.87

4 P/BV ratio = Share price ÷ BVPS
= 120.42 ÷ 8.87 = 13.58

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 increased from Q4 2017 to Q1 2018 and from Q1 2018 to Q2 2018.

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Stock Analysis on Net