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Automatic Data ProcessingMEX:ADAP 90 Earnings Yield (Joel Greenblatt) % is 7.42% as of Mar. 2026, which is 61% above its 10-year median of 4.61. GuruFocus rates MEX:ADAP with a GF Score™ of 90/100 and a GF Value™ of MXN5,265.96 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,910 Software companies, Automatic Data Processing ranks better than 67.46% on this metric.
Automatic Data Processing's Enterprise Value for the quarter that ended in Mar. 2026 was MXN1,494,052 Mil.
Automatic Data Processing's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was MXN111,719 Mil. Automatic Data Processing's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 7.42%.
The historical rank and industry rank for Automatic Data Processing's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
MEX:ADAP'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.41 Med: 4.61 Max: 7.94
Current: 6.05
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Automatic Data Processing was 7.94%. The lowest was 3.41%. And the median was 4.61%.
MEX:ADAP's Earnings Yield (Joel Greenblatt) % is ranked better than 67.46% of 2910
companies
in the Software industry
Industry Median: 2.115
vs MEX:ADAP: 6.05
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Automatic Data Processing's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 18.29%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Automatic Data Processing (MEX:ADAP) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Automatic Data Processing Earnings Yield (Joel Greenblatt) % Related Terms
Automatic Data Processing Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Automatic Data Processing's Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % Chart
For the Software - Application subindustry, Automatic Data Processing's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Earnings Yield (Joel Greenblatt) % falls into.
Automatic Data Processing Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Automatic Data Processings Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jun. 2025 is calculated as
Automatic Data Processing's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN111,719 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 7.42% mean?
Automatic Data Processing (MEX:ADAP) has a Earnings Yield (Joel Greenblatt) % of 7.42% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Automatic Data Processing and its competitors. This is 61% above median its historical median of 4.61. Over the past decade, Automatic Data Processing's Earnings Yield (Joel Greenblatt) % has ranged from 3.41 to 7.94. According to the industry distribution chart, Automatic Data Processing ranks #947 out of 2910 companies in the Software industry, placing it in the top 32.5%.
Is Automatic Data Processing's Earnings Yield (Joel Greenblatt) % too high?
Automatic Data Processing's current Earnings Yield (Joel Greenblatt) % of 7.42% is 61% above median its 10-year median of 4.61. Over the past 10 years, this metric has ranged from a low of 3.41 to a high of 7.94. The Software industry median Earnings Yield (Joel Greenblatt) % is 2.12. Automatic Data Processing's value of 7.42% is 250.8% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #947 out of 2910 companies in the Software industry, which is above the industry midpoint. Overall, Automatic Data Processing has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Earnings Yield (Joel Greenblatt) % compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #947 out of 2910 companies for Earnings Yield (Joel Greenblatt) %. This puts Automatic Data Processing in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.12. Automatic Data Processing's value of 7.42% is 250.8% above this benchmark. Historically, Automatic Data Processing's own Earnings Yield (Joel Greenblatt) % has ranged from 3.41 to 7.94 over the past decade. While the company's 10-year median is 4.61 vs. the industry median of 2.12, 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 Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 2.12, based on 2,910 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Earnings Yield (Joel Greenblatt) % of 7.42% is 250.8% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Earnings Yield (Joel Greenblatt) % is 7.42%, which is 61% above median its own 10-year median of 4.61. 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 (MEX:ADAP) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN5,265.96, compared to a current price of MXN4,310.00 — trading 18.2% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 7.42%, which is 61% above median its 10-year median of 4.61 and 250.8% above the Software industry median of 2.12. Automatic Data Processing's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Automatic Data Processing (MEX:ADAP), the current Earnings Yield (Joel Greenblatt) % is 7.42% as of Mar. 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 (MEX:ADAP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of MXN4,310.00 is trading 18.2% below its estimated GF Value™ of MXN5,265.96.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for MEX:ADAP:
Earnings Yield (Joel Greenblatt) %: 7.42% (61% above median its 10-year median of 4.61)
GF Value™: MXN5,265.96 vs. price of MXN4,310.00 (18.2% below fair value)
Industry Position: 250.8% above the Software median (#947 of 2910)
No single metric tells the full story. See the MEX:ADAP 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.
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