The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2022-08-16), Automatic Data Processing's share price is $259.71. Automatic Data Processing's Book Value per Share for the quarter that ended in Jun. 2022 was $7.75. Hence, Automatic Data Processing's PB Ratio of today is 33.51.
Warning Sign:
Automatic Data Processing Inc stock PB Ratio (=33.51) is close to 10-year high of 33.51
The historical rank and industry rank for Automatic Data Processing's PB Ratio or its related term are showing as below:
ADP'
s PB Ratio Range Over the Past 10 Years
Min: 3.34 Med: 10.56 Max: 33.51
Current: 33.51
During the past 13 years, Automatic Data Processing's highest PB Ratio was 33.51. The lowest was 3.34. And the median was 10.56.
ADP's PB Ratio is ranked worse than 99.2% of 1000
companies
in the Business Services industry
Industry Median: 1.87
vs ADP: 33.51
During the past 12 months, Automatic Data Processing's average Book Value Per Share Growth Rate was -42.10% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was -14.60% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was -1.70% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Automatic Data Processing was 18.70% per year. The lowest was -14.60% per year. And the median was 7.75% per year.
Back to Basics: PB Ratio
Automatic Data Processing PB Ratio Historical Data
The historical data trend for Automatic Data Processing's 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.
* Premium members only.
Automatic Data Processing Annual Data
Trend
Jun13
Jun14
Jun15
Jun16
Jun17
Jun18
Jun19
Jun20
Jun21
Jun22
PB Ratio
12.43
13.29
11.13
14.84
27.10
Automatic Data Processing Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
PB Ratio
14.84
15.77
20.53
22.69
27.10
Competitive Comparison
For the Staffing & Employment Services subindustry, Automatic Data Processing's PB Ratio, along with its competitors' market caps and 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 PB Ratio Distribution
For the Business Services industry and Industrials sector, Automatic Data Processing's PB Ratio distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's PB Ratio falls into.
Automatic Data Processing PB Ratio Calculation
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
Automatic Data Processing's PB Ratio for today is calculated as follows:
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Automatic Data Processing (NAS:ADP) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Automatic Data Processing PB Ratio Related Terms
Thank you for viewing the detailed overview of Automatic Data Processing's PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 920,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM solutions, HR outsourcing, insurance and retirement services. The smaller but faster-growing PEO segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
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