Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Historical Valuation Ratios (Summary)
Automatic Data Processing Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited a general upward trend from late 2016 through early 2019, increasing from approximately 26.44 to a peak around 36.2. Subsequently, the ratio experienced a decline during the first half of 2020, dropping to about 23.49 amid a notable market shift. From mid-2020 onwards, the ratio gradually recovered, reaching above 35 by late 2021 before slightly decreasing to near 31.85 by March 2022. This pattern suggests periods of both investor optimism and caution, with earnings growth or valuation adjustments influencing the ratio dynamically over time.
- Price to Operating Profit (P/OP) Ratio
- This ratio followed a pattern similar to the P/E ratio, starting at 17.88 in late 2016 and steadily climbing to over 24 by mid-2019. A sharp reduction occurred in early 2020, descending to under 19, likely reflecting operational profit impacts during that period. Post-2020, the ratio showed recovery momentum, rising to approximately 27.34 by late 2021 before moderating to around 24.86 by early 2022. The fluctuations indicate changes in operating profitability relative to market valuation, with notable sensitivity to the economic environment affecting profit margins.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio showed a consistent upward trajectory from around 3.4 in late 2016 to a peak exceeding 6 in late 2021. A slight dip was observed during the first half of 2020, correlating with broader market disruptions, but recovery was swift and strong afterwards. The increasing trend reflects enhanced market valuation relative to sales, suggesting either growing sales efficiency or elevated investor expectations for future revenue growth.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio displayed substantial variability over the period. Initially moving from 9.48 in late 2016 up to approximately 17 by mid-2018, it then declined into mid-2020, reaching values close to 10.07. Subsequently, the ratio increased sharply, culminating in a value exceeding 21 by early 2022. The pronounced rise towards the end of the period indicates increased market confidence in the company's book value or intangible assets, possibly reflecting improvements in balance sheet strength or market sentiment regarding asset quality and growth prospects.
Price to Earnings (P/E)
Automatic Data Processing Inc., historical P/E calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Net earnings (in thousands) | ||||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||||
| AppLovin Corp. | ||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
EPS
= (Net earningsQ3 2022
+ Net earningsQ2 2022
+ Net earningsQ1 2022
+ Net earningsQ4 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Automatic Data Processing Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price showed a general upward trajectory from September 2016 through March 2022. Starting at $89.33, it climbed steadily to reach a peak of $224.49 by December 2021. Some fluctuations are evident, notably a decline during the first half of 2020, where the price fell from approximately $171.39 in December 2019 to $134.77 in June 2020. Thereafter, the price rebounded strongly, reaching new highs through 2021 before experiencing a moderate decline to $218.18 in March 2022.
- Earnings Per Share (EPS) Development
- EPS increased consistently over the period analyzed, rising from $3.38 in September 2016 to $6.85 by March 2022. The growth was steady with occasional minor dips, such as a slight decrease in June 2018 to $3.70 from $4.04 in March 2018. Notably, EPS showed resilience during the 2020 market downturn, maintaining relatively stable values above $5.7 despite the share price dip, indicating sustained profitability.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio exhibited more variability compared to share price and EPS. Starting at 26.44 in September 2016, the ratio generally trended upwards, peaking around the 35-36 range between 2017 and 2019. A marked decrease is observed during the first half of 2020, concurrent with the share price drop, where the ratio fell to approximately 23.49. Following this period, the P/E ratio increased again, reaching over 35 by late 2021, suggesting increased market optimism or higher valuation multiples, before settling slightly lower around 31.85 by March 2022.
- Interrelationships and Insights
- The data indicate a strong positive growth in EPS underpinning the rise in share prices over the long term. Price fluctuations appear more volatile relative to the EPS trend, reflecting market sentiment and external factors impacting valuation. The P/E ratio, while fluctuating, generally moves in tandem with the share price, highlighting changing market perceptions of valuation relative to earnings. The dip in share price and P/E ratio during early 2020 corresponds to a period of market stress, whereas the steady or rising EPS during the same time reflects operational robustness. The subsequent recovery in share price and P/E ratio emphasizes market confidence in the company’s earnings recovery and growth prospects.
Price to Operating Profit (P/OP)
Automatic Data Processing Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Operating income (in thousands) | ||||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||||
| AppLovin Corp. | ||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
Operating profit per share
= (Operating incomeQ3 2022
+ Operating incomeQ2 2022
+ Operating incomeQ1 2022
+ Operating incomeQ4 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Automatic Data Processing Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited a generally upward trend from September 2016 through March 2022, starting at $89.33 and rising to $218.18 by the end of the period. Notable increases occurred in late 2016 and again toward the end of 2021. However, there was a significant dip in share price around March and June 2020, likely influenced by broader market volatility during that period.
Operating profit per share demonstrated consistent growth throughout the observed periods. Beginning at $5.00 in September 2016, it steadily increased to $8.78 by March 2022. This reflects sustained improvements in operational profitability over the span of these years, with minor fluctuations around mid-2020, which may be correlated with the share price dip noted during the same timeframe.
The price to operating profit ratio (P/OP) showed variability over the time frame. Initially, the ratio was in the neighborhood of 17.88 to 18.72 during 2016 and early 2017, then rose progressively to peak around 27.34 by late 2021 before slightly declining to approximately 24.86 in March 2022. This increasing ratio trend suggests that the market valuation expanded at a faster pace compared to operating profit growth, indicating heightened investor optimism or expectations about future earnings potential during the later periods.
- Share Price Trends
- Overall upward movement from 2016 to 2022, punctuated by a temporary decline in early 2020.
- Operating Profit per Share Trends
- Consistent growth with minor fluctuations, indicating improving profitability.
- Price to Operating Profit Ratio (P/OP)
- Gradual increase over the years, implying rising market valuation relative to operating profit, with a peak in late 2021 and slight improvement correction thereafter.
- Market Dynamics Interpretation
- The share price and P/OP fluctuations around early 2020 correspond with a broader market event leading to temporary valuation compression, while the recovery in subsequent periods points to renewed investor confidence.
Price to Sales (P/S)
Automatic Data Processing Inc., historical P/S calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Revenues (in thousands) | ||||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||||
| AppLovin Corp. | ||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
Sales per share
= (RevenuesQ3 2022
+ RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Automatic Data Processing Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a general upward movement over the analyzed period. Beginning at $89.33 in September 2016, the price increased steadily, reaching a peak of $171.39 by December 2019. A notable decline occurred in the first half of 2020, with the share price falling to $134.77 by June 2020, likely reflecting market disruptions. However, recovery followed, with the price climbing to $224.49 by December 2021 before experiencing a slight dip to $218.18 in March 2022.
- Sales per Share Trend
- Sales per share demonstrated consistent growth throughout the timeframe. Starting at $26.31 in September 2016 and advancing gradually to $38.56 by March 2022, sales per share increased steadily without significant volatility. Minimal fluctuations occurred during mid-2020, where sales per share slightly dipped but then resumed growth, indicating resilience in sales performance despite external challenges.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio showed an upward trend with intermittent fluctuations. Initially at 3.4 in September 2016, it rose to exceed 5.0 by late 2018 and early 2019, reflecting increasing valuation multiples. A decline occurred during early to mid-2020, with the ratio falling to around 3.97 by June 2020, coinciding with a dip in the share price. Subsequently, the ratio ascended again, reaching a significant peak of 6.16 by September 2021, before slightly decreasing to 5.66 by March 2022. These variations suggest changing market sentiments regarding the company's valuation relative to its sales.
- Overall Observations
- The data reveals a generally positive trajectory in both equity valuation and sales performance over the analyzed quarters. The mid-2020 period marks a clear impact point with decreases in share price and valuation multiples, corresponding to wider economic conditions. Despite this, sales per share maintained relative stability, indicating operational steadiness. Post-2020 recovery patterns are marked by stronger increases in valuation multiples compared to sales growth, which may imply heightened investor expectations or improved market positioning.
Price to Book Value (P/BV)
Automatic Data Processing Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Stockholders’ equity (in thousands) | ||||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||||
| AppLovin Corp. | ||||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Automatic Data Processing Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends and patterns regarding the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the observed periods.
- Share Price
- The share price exhibited a general upward trend from September 2016 through March 2022, rising from $89.33 to $218.18. There were periods of notable acceleration, particularly between December 2017 and December 2018, where the price increased from $120.42 to $139.84, and more markedly between March 2021 and December 2021, jumping from $186.99 to $224.49. Conversely, some corrections were observed, notably post-March 2020, where the price dipped from $171.39 in December 2019 to $140.42 in March 2020, likely reflecting broader market volatility, before recovering steadily thereafter.
- Book Value Per Share (BVPS)
- The BVPS showed relative stability with modest growth over the examined timeframe. Starting at $9.42 in September 2016, it experienced slight fluctuations and a decrease to $7.90 in June 2018, followed by a consistent increase that peaked at $13.79 in December 2020. A decline followed in 2021 and early 2022, dropping to $10.04 by March 31, 2022. This pattern suggests general growth in underlying equity value per share, interrupted by some volatility in recent quarters.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio demonstrated significant variability and an overall upward trajectory, reflecting changes in market valuation relative to book value. The ratio started at 9.48 in September 2016 and climbed steadily, reaching a peak of 17.00 in June 2018. After some oscillations, it continued to rise sharply in late 2021 and early 2022, culminating at 21.74 in March 2022. This increase indicates that the market price has been growing at a faster rate than book value per share, signifying heightened investor optimism or expectations of future earnings growth.