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 December 2023 (TTM): 27.5
According to Automatic Data Processing's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 27.497. At the end of 2022 the company had a P/E ratio of 31.6.
P/E ratio history for Automatic Data Processing from 2001 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 31.6 | -16.97% |
| 2021 | 38.1 | 24.83% |
| 2020 | 30.5 | 1.91% |
| 2019 | 29.9 | -4.41% |
| 2018 | 31.3 | 16.69% |
| 2017 | 26.8 | -2.16% |
| 2016 | 27.4 | 4.82% |
| 2015 | 26.1 | -5.59% |
| 2014 | 27.7 | 14.79% |
| 2013 | 24.1 | 40% |
| 2012 | 17.2 | -0.77% |
| 2011 | 17.4 | 3.45% |
| 2010 | 16.8 | 21.03% |
| 2009 | 13.9 | -3.2% |
| 2008 | 14.3 | -20.09% |
| 2007 | 17.9 | 31.78% |
| 2006 | 13.6 | -48.41% |
| 2005 | 26.4 | -4.75% |
| 2004 | 27.7 | 14.61% |
| 2003 | 24.2 | 42.06% |
| 2002 | 17.0 | -41.01% |
| 2001 | 28.8 |
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 | 52.8 | 92.16% | 🇺🇸 USA |
 Intuit INTU | 66.6 | 142.26% | 🇺🇸 USA |
 Iron Mountain IRM | 68.7 | 149.85% | 🇺🇸 USA |
 Paychex PAYX | 28.1 | 2.14% | 🇺🇸 USA |
 Accenture ACN | 30.8 | 11.91% | 🇮🇪 Ireland |
 Barrett Business Services BBSI | 15.7 | -42.82% | 🇺🇸 USA |
 TriNet TNET | 19.1 | -30.47% | 🇺🇸 USA |
 Insperity
NSP | 23.3 | -15.20% | 🇺🇸 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.