Automatic Data Processing, Inc. EV/EBITDA
Data as of June 01, 2026
EV/EBITDA
14.17
Enterprise Value
$89.85B
EBITDA (TTM)
$6.34B
Sector
Technology
How It's Calculated
14.17 = $89.85B ÷ $6.34B
What This Means
Automatic Data Processing, Inc.'s EV/EBITDA of 14.2 is in a moderate range for Technology.
About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) operates in the Technology sector, specifically in Software - Application. With a market capitalization of about $88.68B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $221.84, within a 52-week range of $188.16 to $329.93 (-32.8% from the high, +17.9% from the low). Beta of 0.84 is broadly in line with typical market sensitivity.
Trailing profit margin is about 20.1%, signaling a solid profit margin for its industry.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For Automatic Data Processing, Inc., the ratio should be read with growth, capex needs, and cycle position in Technology. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions — especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 14.17x EV/EBITDA, Automatic Data Processing, Inc. (ADP) carries a mid-range EV/EBITDA multiple that investors often stack-rank within the sector. Enterprise value of about $89.85B and EBITDA near $6.34B form the ratio — adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the ADP metrics hub for related valuation pages.
Sector Comparison
Among Technology names on our S&P 100 coverage, Automatic Data Processing, Inc.'s EV/EBITDA of 14.17 can be compared with peers such as NVDA (30.63), AAPL (28.75), MSFT (18.39). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Technology stocks.
Key Takeaways
- ADP is grouped in the Technology sector for peer comparisons.
- Recent beta of 0.84 suggests lower-than-market price sensitivity.
- Trailing profit margin of 20.1% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for ADP.
Other ADP Metrics
Frequently Asked Questions
What is ADP's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. Automatic Data Processing, Inc.'s ratio is about 14.17 — common for comparing leveraged companies in Technology.
Is 14.17 high or low vs peers?
Among Technology peers (e.g. MRVL (66.65), AVGO (58.23), LRCX (50.57)), ADP's 14.17 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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