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Automatic Data Processing PS Ratio

: 6.84 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Automatic Data Processing's share price is $260.85. Automatic Data Processing's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $38.11. Hence, Automatic Data Processing's PS Ratio for today is 6.84.

Warning Sign:

Automatic Data Processing Inc stock PS Ratio (=6.82) is close to 10-year high of 6.86

The historical rank and industry rank for Automatic Data Processing's PS Ratio or its related term are showing as below:

ADP' s PS Ratio Range Over the Past 10 Years
Min: 2.11   Med: 4   Max: 6.86
Current: 6.84

During the past 13 years, Automatic Data Processing's highest PS Ratio was 6.86. The lowest was 2.11. And the median was 4.00.

ADP's PS Ratio is ranked worse than
88.99% of 1081 companies
in the Business Services industry
Industry Median: 1.19 vs ADP: 6.84

Automatic Data Processing's Revenue per Sharefor the three months ended in Jun. 2022 was $9.56. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $38.11.

Good Sign:

Automatic Data Processing Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Automatic Data Processing was 11.90% per year. During the past 3 years, the average Revenue per Share Growth Rate was 7.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 6.90% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.30% per year.

During the past 13 years, Automatic Data Processing's highest 3-Year average Revenue per Share Growth Rate was 17.00% per year. The lowest was -2.20% per year. And the median was 9.20% per year.

Back to Basics: PS Ratio


Automatic Data Processing PS Ratio Historical Data

The historical data trend for Automatic Data Processing's PS 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
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.64 5.34 4.59 5.83 5.51

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
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 5.83 5.70 6.86 6.14 5.51

Competitive Comparison

For the Staffing & Employment Services subindustry, Automatic Data Processing's PS Ratio, along with its competitors' market caps and PS 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 PS Ratio Distribution

For the Business Services industry and Industrials sector, Automatic Data Processing's PS Ratio distribution charts can be found below:

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



Automatic Data Processing PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Automatic Data Processing's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=260.85/38.113
=6.84

Automatic Data Processing's Share Price of today is $260.85.
Automatic Data Processing's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $38.11.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Automatic Data Processing  (NAS:ADP) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Automatic Data Processing PS Ratio Related Terms

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Automatic Data Processing Business Description

Automatic Data Processing logo
Address
One ADP Boulevard, Roseland, NJ, USA, 07068
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.
Executives
Goeckeler David director C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Blanchard Augusto J officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Sperduto James T officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Magliulo Virginia officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Quevedo Alexander officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Kwon David officer: Corp VP ONE ADP BOULEVARD ROSELAD NJ 07068
D'ambrosio Christopher officer: Corp. VP ONE ADP BOULEVARD ROSELAND NJ 07068
Haynesworth Linnie M director 214 N TRYON STREET CHARLOTTE NC 28202
Brown Laura G officer: Corp. VP ONE ADP BOULEVARD ROSELAND NJ 07068
Keene Nazzic S director 1710 SAIC DRIVE MCLEAN VA 22102
Michaud Brian L. officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Desilva Joseph officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Katsoudas Francine S director ONE ADP BOULEVARD ROSELAND NJ 07068
Winters Kathleen A officer: Corp. VP 101 COLUMBIA ROAD MORRISTOWN NJ 07960
Levin Matthew officer: Corp VP NEUSTAR, INC. 4600 CENTER OAK PLAZA STERLING VA 20166

Automatic Data Processing Headlines

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