Automatic Data Processing Inc EV/EBITDA
Data as of August 04, 2026
EV/EBITDA
17.09
Enterprise Value
$107.25B
EBITDA (TTM)
$6.28B
Sector
Professional Services
How It's Calculated
17.09 = $107.25B ÷ $6.28B
What This Means
Automatic Data Processing Inc's EV/EBITDA of 17.1 is in a moderate range for Professional Services.
About Automatic Data Processing Inc
Automatic Data Processing Inc (ADP) operates in the Professional Services sector, specifically in Professional Services. With a market capitalization of about $106.51B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $269.78, within a 52-week range of $188.16 to $315.26 (-14.4% from the high, +43.4% 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 Professional Services. 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 17.09x EV/EBITDA, Automatic Data Processing Inc (ADP) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $107.25B and EBITDA near $6.28B 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
Within the Professional Services sector, EV/EBITDA levels vary with business model, growth rate, and capital structure. Automatic Data Processing Inc's current EV/EBITDA of 17.09 should be read alongside other ADP metrics on this site and with sector norms — not in isolation. View all Professional Services stocks.
Key Takeaways
- ADP is grouped in the Professional Services 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.
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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 17.09 — common for comparing leveraged companies in Professional Services.
Is 17.09 high or low vs peers?
EV/EBITDA norms differ in Professional Services; compare ADP with closest business-model peers.
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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