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Automatic Data ProcessingADP +0.98%98 Shiller PE Ratio is 35.23 as of Aug. 31, 2026, which is 14% below its 10-year median of 41.16. GuruFocus rates ADP with a GF Score™ of 98/100 and a GF Value™ of $306.13 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,022 Software companies, Automatic Data Processing ranks worse than 60.67% on this metric.
The historical rank and industry rank for Automatic Data Processing's Shiller PE Ratio or its related term are showing as below:
ADP'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 23.84 Med: 41.16 Max: 52.95
Current: 35.21
During the past years, Automatic Data Processing's highest Shiller PE Ratio was 52.95. The lowest was 23.84. And the median was 41.16.
ADP's Shiller PE Ratio is ranked worse than 60.67% of 1022
companies
in the Software industry
Industry Median: 27.635
vs ADP: 35.21
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Automatic Data Processing's adjusted earnings per share data for the three months ended in Jun. 2026 was $2.450. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $8.16 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Automatic Data Processing (NAS:ADP) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Automatic Data Processing Shiller PE Ratio Related Terms
Automatic Data Processing Shiller PE Ratio Historical Data
* 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.
ADP vs SNOW, ADBE, INTU: Shiller PE Ratio Comparison
For the Software - Application subindustry, Automatic Data Processing's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Shiller PE Ratio falls into.
Automatic Data Processing Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Automatic Data Processing (ADP) has a Shiller PE Ratio of 35.23 as of Aug. 31, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Automatic Data Processing and its competitors. This is 14% below median its historical median of 41.16. Over the past decade, Automatic Data Processing's Shiller PE Ratio has ranged from 23.84 to 52.95. According to the industry distribution chart, Automatic Data Processing ranks #620 out of 1022 companies in the Software industry, placing it in the top 60.7%.
Is Automatic Data Processing's Shiller PE Ratio too high?
Automatic Data Processing's current Shiller PE Ratio of 35.23 is 14% below median its 10-year median of 41.16. Over the past 10 years, this metric has ranged from a low of 23.84 to a high of 52.95. The Software industry median Shiller PE Ratio is 27.64. Automatic Data Processing's value of 35.23 is 27.5% above this industry median. Based on the distribution chart, Automatic Data Processing ranks #620 out of 1022 companies in the Software industry, which is below the industry midpoint. Overall, Automatic Data Processing has a GF Score™ of 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Shiller PE Ratio compare to SNOW and ADBE?
According to the Software industry distribution chart, Automatic Data Processing ranks #620 out of 1022 companies for Shiller PE Ratio. This places Automatic Data Processing in the lower half of its industry. The industry median Shiller PE Ratio is 27.64. Automatic Data Processing's value of 35.23 is 27.5% above this benchmark. Historically, Automatic Data Processing's own Shiller PE Ratio has ranged from 23.84 to 52.95 over the past decade. While the company's 10-year median is 41.16 vs. the industry median of 27.64, 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 Shiller PE Ratio for a Software company?
The median Shiller PE Ratio among Software companies is 27.64, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Shiller PE Ratio of 35.23 is 27.5% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Shiller PE Ratio is 27.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Shiller PE Ratio is 35.23, which is 14% below median its own 10-year median of 41.16. 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 (ADP) is currently considered Fairly Valued. The stock's GF Value™ is $306.13, compared to a current price of $287.48 — trading 6.1% below its estimated fair value. The current Shiller PE Ratio is 35.23, which is 14% below median its 10-year median of 41.16 and 27.5% above the Software industry median of 27.64. Automatic Data Processing's overall GF Score™ is 98/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Automatic Data Processing (ADP), the current Shiller PE Ratio is 35.23 as of Aug. 31, 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 (ADP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of $287.48 is trading 6.1% below its estimated GF Value™ of $306.13.
GuruFocus considers Automatic Data Processing to be Fairly Valued.
Key valuation signals for ADP:
Shiller PE Ratio: 35.23 (14% below median its 10-year median of 41.16)
GF Value™: $306.13 vs. price of $287.48 (6.1% below fair value)
Industry Position: 27.5% above the Software median (#620 of 1022)
No single metric tells the full story. See the ADP 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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