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Automatic Data ProcessingXSGO:ADP 79 Cyclically Adjusted PB Ratio is 16.42 as of Aug. 12, 2026, which is 6% above its 10-year median of 15.46. GuruFocus rates XSGO:ADP with a GF Score™ of 79/100 and a GF Value™ of $254.70 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,551 Software companies, Automatic Data Processing ranks worse than 96.07% on this metric.
The historical rank and industry rank for Automatic Data Processing's Cyclically Adjusted PB Ratio or its related term are showing as below:
XSGO:ADP'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 7.06 Med: 15.46 Max: 25.51
Current: 19.87
During the past years, Automatic Data Processing's highest Cyclically Adjusted PB Ratio was 25.51. The lowest was 7.06. And the median was 15.46.
XSGO:ADP's Cyclically Adjusted PB Ratio is ranked worse than 96.07% of 1551
companies
in the Software industry
Industry Median: 2.31
vs XSGO:ADP: 19.87
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Automatic Data Processing's adjusted book value per share data for the three months ended in Jun. 2026 was $15.161. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $13.78 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Automatic Data Processing (XSGO:ADP) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Automatic Data Processing Cyclically Adjusted PB Ratio Related Terms
Automatic Data Processing Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Automatic Data Processing's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing Cyclically Adjusted PB Ratio Chart
XSGO:ADP vs NOW, SNOW, CDNS: Cyclically Adjusted PB Ratio Comparison
For the Software - Application subindustry, Automatic Data Processing's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Automatic Data Processing Cyclically Adjusted PB Ratio vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Cyclically Adjusted PB Ratio falls into.
Automatic Data Processing Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 16.42 mean?
Automatic Data Processing (XSGO:ADP) has a Cyclically Adjusted PB Ratio of 16.42 as of Aug. 12, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Automatic Data Processing and its competitors. This is near median its historical median of 15.46. Over the past decade, Automatic Data Processing's Cyclically Adjusted PB Ratio has ranged from 7.06 to 25.51. According to the industry distribution chart, Automatic Data Processing ranks #1490 out of 1551 companies in the Software industry, placing it in the top 96.1%.
Is Automatic Data Processing's Cyclically Adjusted PB Ratio too high?
Automatic Data Processing's current Cyclically Adjusted PB Ratio of 16.42 is near median its 10-year median of 15.46. Over the past 10 years, this metric has ranged from a low of 7.06 to a high of 25.51. The Software industry median Cyclically Adjusted PB Ratio is 2.31. Automatic Data Processing's value of 16.42 is 610.8% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #1490 out of 1551 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Automatic Data Processing has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Cyclically Adjusted PB Ratio compare to NOW and SNOW?
According to the Software industry distribution chart, Automatic Data Processing ranks #1490 out of 1551 companies for Cyclically Adjusted PB Ratio. This places Automatic Data Processing in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 2.31. Automatic Data Processing's value of 16.42 is 610.8% above this benchmark. Historically, Automatic Data Processing's own Cyclically Adjusted PB Ratio has ranged from 7.06 to 25.51 over the past decade. While the company's 10-year median is 15.46 vs. the industry median of 2.31, Automatic Data Processing has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Software company?
The median Cyclically Adjusted PB Ratio among Software companies is 2.31, based on 1,551 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Cyclically Adjusted PB Ratio of 16.42 is 610.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Cyclically Adjusted PB Ratio is 2.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Cyclically Adjusted PB Ratio is 16.42, which is near median its own 10-year median of 15.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Automatic Data Processing stock overvalued right now?
Based on GuruFocus' analysis, Automatic Data Processing (XSGO:ADP) is currently considered Modestly Undervalued. The stock's GF Value™ is $254.70, compared to a current price of $226.21 — trading 11.2% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 16.42, which is near median its 10-year median of 15.46 and 610.8% above the Software industry median of 2.31. Automatic Data Processing's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Automatic Data Processing (XSGO:ADP), the current Cyclically Adjusted PB Ratio is 16.42 as of Aug. 12, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Automatic Data Processing (XSGO:ADP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of $226.21 is trading 11.2% below its estimated GF Value™ of $254.70.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for XSGO:ADP:
Cyclically Adjusted PB Ratio: 16.42 (near median its 10-year median of 15.46)
GF Value™: $254.70 vs. price of $226.21 (11.2% below fair value)
Industry Position: 610.8% above the Software median (#1490 of 1551)
No single metric tells the full story. See the XSGO:ADP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Automatic Data Processing, or ADP, is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large market shares in its core markets. As of fiscal 2025, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
79GF Score
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