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ADP (Automatic Data Processing) EV-to-EBITDA : 20.59 (As of Jun. 12, 2025)


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What is Automatic Data Processing EV-to-EBITDA?

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Automatic Data Processing's enterprise value is $128,207 Mil. Automatic Data Processing's EBITDA for the trailing twelve months (TTM) ended in Mar. 2025 was $6,226 Mil. Therefore, Automatic Data Processing's EV-to-EBITDA for today is 20.59.

The historical rank and industry rank for Automatic Data Processing's EV-to-EBITDA or its related term are showing as below:

ADP' s EV-to-EBITDA Range Over the Past 10 Years
Min: 13.12   Med: 19.2   Max: 25.63
Current: 20.59

During the past 13 years, the highest EV-to-EBITDA of Automatic Data Processing was 25.63. The lowest was 13.12. And the median was 19.20.

ADP's EV-to-EBITDA is ranked worse than
63.82% of 1921 companies
in the Software industry
Industry Median: 13.86 vs ADP: 20.59

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2025-06-12), Automatic Data Processing's stock price is $309.08. Automatic Data Processing's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2025 was $9.770. Therefore, Automatic Data Processing's PE Ratio (TTM) for today is 31.64.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).


Automatic Data Processing EV-to-EBITDA Historical Data

The historical data trend for Automatic Data Processing's EV-to-EBITDA 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 EV-to-EBITDA Chart

Automatic Data Processing Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
EV-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.10 21.60 20.29 17.52 16.88

Automatic Data Processing Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
EV-to-EBITDA 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 17.89 16.88 19.08 19.75 20.19

Competitive Comparison of Automatic Data Processing's EV-to-EBITDA

For the Software - Application subindustry, Automatic Data Processing's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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 EV-to-EBITDA Distribution in the Software Industry

For the Software industry and Technology sector, Automatic Data Processing's EV-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's EV-to-EBITDA falls into.


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Automatic Data Processing EV-to-EBITDA Calculation

Automatic Data Processing's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=128207.312/6225.5
=20.59

Automatic Data Processing's current Enterprise Value is $128,207 Mil.
Automatic Data Processing's EBITDA for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,226 Mil.

* 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  (NAS:ADP) EV-to-EBITDA Explanation

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

Automatic Data Processing's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=309.08/9.770
=31.64

Automatic Data Processing's share price for today is $309.08.
Automatic Data Processing's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.770.

* 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.

Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).

Please read Which price ratio outperforms the enterprise multiple?


Automatic Data Processing EV-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Automatic Data Processing's EV-to-EBITDA 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.
Executives
Christopher D'ambrosio officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Brian L. Michaud officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Michael A Bonarti officer: Staff Vice President ONE ADP BOULEVARD, ROSELAND NJ 07068
Virginia Magliulo officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
David Kwon officer: Corp VP ONE ADP BOULEVARD, ROSELAD NJ 07068
John Ayala officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Maria Black officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Joseph Desilva officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Don Mcguire officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Sreenivasa Kutam officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Carlos A Rodriguez officer: Corporate Vice President 10200 SUNSET DRIVE, MIAMI FL 33173
Brock Albinson officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Paul Boland officer: Corp. VP ONE ADP BOULEVARD, ROSELAND NJ 07068
Donald Weinstein officer: Corporate VP ONE ADP BOULEVARD, ROSELAND NJ 07068
James T Sperduto officer: Corp VP ONE ADP BOULEVARD, ROSELAND NJ 07068