Automatic Data Processing, Inc., also known as ADP, is a provider of human resources management software and services. With around 620,000 customers, ADP is one of the world's largest independent IT service companies and is considered a leading provider of HR services such as payroll, time recording and travel expense management.
P/E ratio for Automatic Data Processing (ADP)
P/E ratio as of March 2023 (TTM): 27.7
According to Automatic Data Processing's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 27.6602. At the end of 2021 the company had a P/E ratio of 38.1.
P/E ratio history for Automatic Data Processing from 2001 to 2022
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2021 | 38.1 | 24.83% |
| 2020 | 30.5 | 1.91% |
| 2019 | 29.9 | -5.33% |
| 2018 | 31.6 | 4.88% |
| 2017 | 30.1 | 9.92% |
| 2016 | 27.4 | 4.82% |
| 2015 | 26.1 | -5.59% |
| 2014 | 27.7 | 14.79% |
| 2013 | 24.1 | 40% |
| 2012 | 17.2 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Alliance Data
ADS | N/A | N/A | 🇺🇸 USA |
 Equifax EFX | 33.9 | 22.62% | 🇺🇸 USA |
 Intuit INTU | 60.1 | 117.34% | 🇺🇸 USA |
 Iron Mountain IRM | 29.3 | 6.07% | 🇺🇸 USA |
 Paychex PAYX | 26.4 | -4.66% | 🇺🇸 USA |
 Accenture ACN | 22.7 | -17.88% | 🇮🇪 Ireland |
 Barrett Business Services BBSI | 12.8 | -53.84% | 🇺🇸 USA |
 TriNet TNET | 13.8 | -50.14% | 🇺🇸 USA |
 Insperity
NSP | 29.6 | 6.84% | 🇺🇸 USA |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.