Automatic Data ProcessingBSP:ADPR34 -0.49%95 Return-on-Tangible-Equity is 367.45% as of Mar. 2026, which is 207% above its 10-year median of 119.51. GuruFocus rates BSP:ADPR34 with a GF Score™ of 95/100 and a GF Value™ of R$66.23 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,469 Software companies, Automatic Data Processing ranks better than 90.36% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Automatic Data Processing's annualized net income for the quarter that ended in Mar. 2026 was R$28,445 Mil. Automatic Data Processing's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$7,741 Mil. Therefore, Automatic Data Processing's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 367.45%.
The historical rank and industry rank for Automatic Data Processing's Return-on-Tangible-Equity or its related term are showing as below:
BSP:ADPR34'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 62.48 Med: 119.51 Max: 1096.92
Current: 326.26
During the past 13 years, Automatic Data Processing's highest Return-on-Tangible-Equity was 1,096.92%. The lowest was 62.48%. And the median was 119.51%.
BSP:ADPR34's Return-on-Tangible-Equity is ranked better than 90.36% of 2469
companies
in the Software industry
Industry Median: 8.62
vs BSP:ADPR34: 326.26
Automatic Data Processing (BSP:ADPR34) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Automatic Data Processing Return-on-Tangible-Equity Related Terms
Automatic Data Processing Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Automatic Data Processing's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
BSP:ADPR34 vs SNOW, DDOG, ADBE: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Automatic Data Processing's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 367.45% mean?
Automatic Data Processing (BSP:ADPR34) has a Return-on-Tangible-Equity of 367.45% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Automatic Data Processing and its competitors. This is 207% above median its historical median of 119.51. Over the past decade, Automatic Data Processing's Return-on-Tangible-Equity has ranged from 62.48 to 1,096.92. According to the industry distribution chart, Automatic Data Processing ranks #238 out of 2469 companies in the Software industry, placing it in the top 9.6%.
Is Automatic Data Processing's Return-on-Tangible-Equity too high?
Automatic Data Processing's current Return-on-Tangible-Equity of 367.45% is 207% above median its 10-year median of 119.51. Over the past 10 years, this metric has ranged from a low of 62.48 to a high of 1,096.92. The Software industry median Return-on-Tangible-Equity is 8.62. Automatic Data Processing's value of 367.45% is 4162.8% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #238 out of 2469 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Automatic Data Processing has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Return-on-Tangible-Equity compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #238 out of 2469 companies for Return-on-Tangible-Equity. This places Automatic Data Processing in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.62. Automatic Data Processing's value of 367.45% is 4162.8% above this benchmark. Historically, Automatic Data Processing's own Return-on-Tangible-Equity has ranged from 62.48 to 1,096.92 over the past decade. While the company's 10-year median is 119.51 vs. the industry median of 8.62, 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 Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.62, based on 2,469 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Return-on-Tangible-Equity of 367.45% is 4162.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Return-on-Tangible-Equity is 367.45%, which is 207% above median its own 10-year median of 119.51. 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 (BSP:ADPR34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$66.23, compared to a current price of R$52.69 — trading 20.4% below its estimated fair value. The current Return-on-Tangible-Equity is 367.45%, which is 207% above median its 10-year median of 119.51 and 4162.8% above the Software industry median of 8.62. Automatic Data Processing's overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Automatic Data Processing (BSP:ADPR34), the current Return-on-Tangible-Equity is 367.45% 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 (BSP:ADPR34) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of R$52.69 is trading 20.4% below its estimated GF Value™ of R$66.23.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for BSP:ADPR34:
Return-on-Tangible-Equity: 367.45% (207% above median its 10-year median of 119.51)
GF Value™: R$66.23 vs. price of R$52.69 (20.4% below fair value)
Industry Position: 4162.8% above the Software median (#238 of 2469)
No single metric tells the full story. See the BSP:ADPR34 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.
95GF Score
Get the complete analysis for BSP:ADPR34
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BSP:ADPR34 has been successfully added to your 
