Automatic Data Processing Stock

Automatic Data Processing EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Automatic Data Processing (ADP) as of Jun 26, 2026 is 15.62.In the previous year, EV/EBIT (Enterprise Value to EBIT) was 17 — a change of -8.14% (lower).

EV/EBIT

15.62

YoY

-8.14%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Automatic Data Processing is 2026 15.62 . EV/EBIT (Enterprise Value to EBIT) of Automatic Data Processing was 2025 17 . It decreases by -8.14% lower compared to the previous year.

The Automatic Data Processing EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2006
1,746 base
Jan 1, 2007
1,448 base
Jan 1, 2008
1,060 base
Jan 1, 2009
1,042 base
Jan 1, 2010
1,156 base
Jan 1, 2011
1,305 base
Jan 1, 2012
1,269 base
Jan 1, 2013
2,072 base
Jan 1, 2014
2,219 base
Jan 1, 2015
2,001 base
Jan 1, 2016
2,154 base
Jan 1, 2017
2,159 base
Jan 1, 2018
2,273 base
Jan 1, 2019
2,467 base
Jan 1, 2020
2,427 base
YEARPRICE-TO-EBIT
2026 est 15,35
2025 19,36
2024 24,19
2023 21,49
2022 26,45
2021 31,75
2020 24,27
2019 24,67
2018 22,73
2017 21,59
2016 21,54
2015 20,01
2014 22,19
2013 20,72
2012 12,69
2011 13,05
2010 11,56
2009 10,42
2008 10,60
2007 14,48
2006 17,46
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Automatic Data Processing Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Automatic Data Processing's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Automatic Data Processing's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Automatic Data Processing's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Automatic Data Processing grows earnings faster than its peers.

Automatic Data Processing Stock analysis

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 is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Automatic Data Processing stock

EV/EBIT (Enterprise Value to EBIT) of Automatic Data Processing amounted to 17 15.62

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