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Automatic Data Processing (BSP:ADPR34) E10 : R$1.76 (As of Dec. 2024)


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What is Automatic Data Processing E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Automatic Data Processing's adjusted earnings per share data for the three months ended in Dec. 2024 was R$0.597. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is R$1.76 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Automatic Data Processing's average E10 Growth Rate was 12.20% per year. During the past 3 years, the average E10 Growth Rate was 13.50% per year. During the past 5 years, the average E10 Growth Rate was 13.00% per year. During the past 10 years, the average E10 Growth Rate was 9.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Automatic Data Processing was 14.10% per year. The lowest was 4.30% per year. And the median was 9.00% per year.

As of today (2025-04-04), Automatic Data Processing's current stock price is R$72.31. Automatic Data Processing's E10 for the quarter that ended in Dec. 2024 was R$1.76. Automatic Data Processing's Shiller PE Ratio of today is 41.09.

During the past 13 years, the highest Shiller PE Ratio of Automatic Data Processing was 52.95. The lowest was 26.53. And the median was 40.29.


Automatic Data Processing E10 Historical Data

The historical data trend for Automatic Data Processing's E10 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.

* Premium members only.

Automatic Data Processing E10 Chart

Automatic Data Processing Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 0.93 1.11 1.16 1.50

Automatic Data Processing Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.22 1.31 1.50 1.50 1.76

Competitive Comparison of Automatic Data Processing's E10

For the Software - Application subindustry, Automatic Data Processing's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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's Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Automatic Data Processing's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Shiller PE Ratio falls into.


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Automatic Data Processing E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, Automatic Data Processing's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.597/133.1571*133.1571
=0.597

Current CPI (Dec. 2024) = 133.1571.

Automatic Data Processing Quarterly Data

per share eps CPI Adj_EPS
201503 0.135 99.621 0.180
201506 0.093 100.684 0.123
201509 0.117 100.392 0.155
201512 0.120 99.792 0.160
201603 0.180 100.470 0.239
201606 0.088 101.688 0.115
201609 0.110 101.861 0.144
201612 0.158 101.863 0.207
201703 0.171 102.862 0.221
201706 0.081 103.349 0.104
201709 0.121 104.136 0.155
201712 0.207 104.011 0.265
201803 0.204 105.290 0.258
201806 0.039 106.317 0.049
201809 0.197 106.507 0.246
201812 0.205 105.998 0.258
201903 0.277 107.251 0.344
201906 0.175 108.070 0.216
201909 0.230 108.329 0.283
201912 0.257 108.420 0.316
202003 0.387 108.902 0.473
202006 0.208 108.767 0.255
202009 0.315 109.815 0.382
202012 0.324 109.897 0.393
202103 0.446 111.754 0.531
202106 0.264 114.631 0.307
202109 0.363 115.734 0.418
202112 0.389 117.630 0.440
202203 0.458 121.301 0.503
202206 0.315 125.017 0.336
202209 0.409 125.227 0.435
202212 0.426 125.222 0.453
202303 0.545 127.348 0.570
202306 0.378 128.729 0.391
202309 0.428 129.860 0.439
202312 0.435 129.419 0.448
202403 0.598 131.776 0.604
202406 0.453 132.554 0.455
202409 0.540 133.029 0.541
202412 0.597 133.157 0.597

Add all the adjusted EPS together and divide 10 will get our e10.


Automatic Data Processing  (BSP:ADPR34) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Automatic Data Processing's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=72.31/1.76
=41.09

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Automatic Data Processing was 52.95. The lowest was 26.53. And the median was 40.29.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Automatic Data Processing E10 Related Terms

Thank you for viewing the detailed overview of Automatic Data Processing's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Automatic Data Processing Business Description

Address
One ADP Boulevard, Roseland, NJ, USA, 07068
Automatic Data Processing is a global technology company providing cloud-based human capital management solutions enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resource outsourcing solutions that allow customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and the professional employer organization services. Employer services consists of the company's HCM products as well as a la carte HRO solutions. PEO services contains ADP's comprehensive HRO solution where it acts as a co-employer with its customer. As of fiscal 2024, ADP serves over 1.1 million clients and pays over 42 million workers across 140 countries.

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