Automatic Data Processing Inc P/B Ratio
Data as of October 02, 2026
P/B Ratio
17.41
Stock Price
$263.96
Book Value/Share
$15.16
Sector
Professional Services
How It's Calculated
17.41 = $263.96 ÷ $15.16
What This Means
Automatic Data Processing Inc's P/B ratio of 17.41 is above 6. Asset-light business models and unrecognized intangible assets can make book value a limited denominator; the multiple alone does not determine fair value.
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 $104.10B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $263.96, within a 52-week range of $188.16 to $294.35 (-10.3% from the high, +40.3% from the low). Beta of 0.82 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
The price-to-book ratio compares market price to net asset value per share. For Automatic Data Processing Inc, P/B is especially useful when earnings are volatile or temporarily depressed. In Professional Services, asset-heavy business models often anchor closer to book value, while asset-light models may trade far above book.
Sector Comparison
Within the Professional Services sector, P/B ratio levels vary with business model, growth rate, and capital structure. Automatic Data Processing Inc's current P/B ratio of 17.41 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 0.82 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 does ADP's price-to-book ratio indicate?
P/B compares share price to book value per share. Automatic Data Processing Inc's P/B of 17.41 reflects how the market prices net assets — especially relevant for asset-heavy Professional Services business models.
Is 17.41 above or below book value?
A P/B above 1.0 (17.41) means the market values ADP above accounting book value — often due to brands, growth, or intangible assets.
How does P/B compare within Professional Services?
Compare ADP's P/B with sector leaders and with return on equity to see if valuation fits profitability.
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