Automatic Data Processing Stock

Automatic Data Processing P/E 2024

Automatic Data Processing P/E

26.81

Ticker

ADP

ISIN

US0530151036

WKN

850347

As of Nov 28, 2024, Automatic Data Processing's P/E ratio was 26.81, a 3.83% change from the 25.82 P/E ratio recorded in the previous year.

The Automatic Data Processing P/E history

Automatic Data Processing Aktienanalyse

What does Automatic Data Processing do?

Automatic Data Processing Inc. (ADP) is an American company specializing in providing management solutions for human resources, payroll, tax and compliance management, and more. It was founded in 1949 by Henry Taub in New Jersey. ADP originally started with payroll processing for small businesses. In the 1960s, it became known for its leading role in data processing for the government and the US military. With the introduction of mainframe computers, ADP began automating its business models and processes and expanding its services to customers worldwide. Over the years, ADP has expanded its portfolio of services and products to adapt to the constantly changing demands of the workforce. It has gained an excellent reputation in the human resources management solutions industry through its innovative technology and focus on customer satisfaction. ADP operates in three main business segments: Employer Services, Professional Employer Organization, and Dealer Services. Employer Services provides comprehensive solutions for payroll, tax administration and compliance, human resources, performance and talent management. ADP offers a wide range of tools and systems to support its clients' HR departments and optimize their operations. These tools include time tracking, entitlement calculation, compliance reporting, employee registration, incentive payments, and more. Professional Employer Organization (PEO) offers business process outsourcing (BPO) for HR departments. By outsourcing HR administration, businesses can save costs and focus on new business development opportunities. ADP offers outsourcing solutions for personnel management, payroll, compliance, and other HR challenges. Customers can take advantage of the benefits of outsourcing while retaining control over their employees. The Dealer Services division offers automotive management solutions for auto dealerships. ADP supports the automotive industry in areas such as financing, insurance, sales management, accounting, and personnel management. This division addresses ADP's solutions for automotive retail and automakers. One of ADP's main product lines is payroll services for small and medium-sized businesses. ADP's payroll system allows for accurate payroll processing for employees, as well as tax and salary deductions, and more. The system also integrates simple solutions for time tracking and employee self-service. Another important product line is ADP Compliance Solutions. This enables companies to generate compliance reports and ensure compliance with labor laws and regulations. ADP's compliance solutions are based on its extensive knowledge in areas such as taxes, labor law, data protection, and other areas where compliance is required. Through mergers and acquisitions in recent years, ADP has expanded its portfolio of services and is emphasizing the integration of innovative technologies into its business processes. In summary, ADP is a leading company in the field of human resources management solutions and payroll. It has decades of experience in providing services to customers worldwide. ADP strives to adapt to the constantly changing demands of the workforce by expanding its product lines and services and investing in advanced technologies to provide its customers with top-notch solutions. Automatic Data Processing ist eines der beliebtesten Unternehmen auf Eulerpool.com.

Automatic Data Processing revenue by segment

  • 69 % Employer Services

  • 31 % Professional Employer Organization Service

P/E Details

Deciphering Automatic Data Processing's P/E Ratio

The Price to Earnings (P/E) Ratio of Automatic Data Processing is a vital metric that investors and analysts use to determine the company’s market value relative to its earnings. It is calculated by dividing the current stock price by the earnings per share (EPS). A higher P/E ratio could suggest that investors are expecting higher future growth, while a lower ratio may indicate a potentially undervalued company or lower growth expectations.

Year-to-Year Comparison

Assessing Automatic Data Processing's P/E ratio on a yearly basis provides insights into the valuation trends and investor sentiment. An increasing P/E ratio over the years signifies growing investor confidence and expectations for future earnings growth, while a decreasing ratio may reflect concerns over the company's profitability or growth prospects.

Impact on Investments

The P/E ratio of Automatic Data Processing is a key consideration for investors aiming to balance risk and reward. A comprehensive analysis of this ratio, in conjunction with other financial indicators, aids investors in making informed decisions regarding buying, holding, or selling the company’s stocks.

Interpreting P/E Ratio Fluctuations

Fluctuations in Automatic Data Processing’s P/E ratio can be attributed to various factors including changes in earnings, stock price movements, and shifts in investor expectations. Understanding the underlying reasons for these fluctuations is essential for predicting future stock performance and assessing the company's intrinsic value.

Frequently Asked Questions about Automatic Data Processing stock

What is the price-to-earnings ratio of Automatic Data Processing?

The price-earnings ratio of Automatic Data Processing is currently 26.81.

How has the price-earnings ratio of Automatic Data Processing changed compared to last year?

The price-to-earnings ratio of Automatic Data Processing has increased by 3.83% increased compared to last year.

What consequences does a high price-earnings ratio have for investors?

A high price-to-earnings ratio indicates that the company's stock is relatively expensive and investors may potentially achieve a lower return.

What does a low price-earnings ratio mean?

A low price-earnings ratio means that the company's stock is relatively cheap and investors may potentially achieve a higher return.

Is the price-earnings ratio of Automatic Data Processing high compared to other companies?

Yes, the price-to-earnings ratio of Automatic Data Processing is high compared to other companies.

How does an increase in the price-earnings ratio of Automatic Data Processing affect the company?

An increase in the price-earnings ratio of Automatic Data Processing would lead to a higher market capitalization of the company, which in turn would lead to a higher valuation of the company.

How does a reduction in the price-to-earnings ratio of Automatic Data Processing affect the company?

A decrease in the price-earnings ratio of Automatic Data Processing would result in a lower market capitalization of the company, which in turn would lead to a lower valuation of the company.

What are some factors that influence the price-earnings ratio of Automatic Data Processing?

Some factors that influence the price-earnings ratio of Automatic Data Processing are the company's growth, financial position, industry development, and the overall economic situation.

How much dividend does Automatic Data Processing pay?

Over the past 12 months, Automatic Data Processing paid a dividend of 5.74 USD . This corresponds to a dividend yield of about 1.87 %. For the coming 12 months, Automatic Data Processing is expected to pay a dividend of 7.69 USD.

What is the dividend yield of Automatic Data Processing?

The current dividend yield of Automatic Data Processing is 1.87 %.

When does Automatic Data Processing pay dividends?

Automatic Data Processing pays a quarterly dividend. This is distributed in the months of April, July, October, January.

How secure is the dividend of Automatic Data Processing?

Automatic Data Processing paid dividends every year for the past 50 years.

What is the dividend of Automatic Data Processing?

For the upcoming 12 months, dividends amounting to 7.69 USD are expected. This corresponds to a dividend yield of 2.5 %.

In which sector is Automatic Data Processing located?

Automatic Data Processing is assigned to the 'Information technology' sector.

Wann musste ich die Aktien von Automatic Data Processing kaufen, um die vorherige Dividende zu erhalten?

To receive the latest dividend of Automatic Data Processing from 1/1/2025 amounting to 1.54 USD, you needed to have the stock in your portfolio before the ex-date on 12/13/2024.

When did Automatic Data Processing pay the last dividend?

The last dividend was paid out on 1/1/2025.

What was the dividend of Automatic Data Processing in the year 2023?

In the year 2023, Automatic Data Processing distributed 5.15 USD as dividends.

In which currency does Automatic Data Processing pay out the dividend?

The dividends of Automatic Data Processing are distributed in USD.

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Andere Kennzahlen von Automatic Data Processing

Our stock analysis for Automatic Data Processing Revenue stock includes important financial indicators such as revenue, profit, P/E ratio, P/S ratio, EBIT, as well as information on dividends. We also assess aspects such as stocks, market capitalization, debt, equity, and liabilities of Automatic Data Processing Revenue. If you are looking for more detailed information on these topics, we offer comprehensive analyses on our subpages.