Question 1

What is Automatic Data Processing's P/FCF ratio?

Accepted Answer

Automatic Data Processing (ADP) P/FCF ratio is 19.0× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for Automatic Data Processing?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For Automatic Data Processing specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is Automatic Data Processing's P/FCF ratio high or low?

Accepted Answer

Automatic Data Processing's P/FCF ratio of 19.0× is below its own 5-year average of 29.4× and below the sector median of 21.8×. That places the current reading at the 7th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is Automatic Data Processing's historical P/FCF ratio range?

Accepted Answer

In the available daily series, Automatic Data Processing (ADP) P/FCF ratio has ranged from a low of 10.9× in 2008 to a high of 47.4× in 2021. The 5-year average is 29.4× and the 5-year median is 27.9×.

Question 7

What was Automatic Data Processing's P/FCF ratio in 2025?

Accepted Answer

Automatic Data Processing (ADP) P/FCF ratio at the end of 2025 was 26.2×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does Automatic Data Processing's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$125B	$4.77B	26.2×	-0.6×	Jun 30, 2025
2024	$96.4B	$3.59B	26.8×	+1.9×	Jun 30, 2024
2023	$90.6B	$3.64B	24.9×	-9.4×	Jun 30, 2023
2022	$87.4B	$2.55B	34.3×	+1.8×	Jun 30, 2022
2021	$84.1B	$2.59B	32.5×	+6.0×	Jun 30, 2021
2020	$63.9B	$2.41B	26.5×	-7.5×	Jun 30, 2020
2019	$72.1B	$2.12B	34.0×	+5.3×	Jun 30, 2019
2018	$58.8B	$2.04B	28.7×	+1.2×	Jun 30, 2018
2017	$45.5B	$1.66B	27.5×	-0.8×	Jun 30, 2017
2016	$41.7B	$1.47B	28.3×	+4.5×	Jun 30, 2016
2015	$37.3B	$1.57B	23.8×	+0.9×	Jun 30, 2015
2014	$33.3B	$1.45B	22.9×	+0.2×	Jun 30, 2014
2013	$29.4B	$1.29B	22.7×	+8.4×	Jun 30, 2013
2012	$23.7B	$1.66B	14.3×	-1.5×	Jun 30, 2012
2011	$22.5B	$1.43B	15.8×	+3.9×	Jun 30, 2011
2010	$17.4B	$1.46B	11.9×	+0.0×	Jun 30, 2010
2009	$15.6B	$1.31B	11.9×	-0.4×	Jun 30, 2009
2008	$18.7B	$1.51B	12.4×	-10.7×	Jun 30, 2008
2007	$22.5B	$975M	23.1×	+8.9×	Jun 30, 2007
2006	$19.8B	$1.4B	14.1×	-1.3×	Jun 30, 2006
2005	$19.1B	$1.24B	15.4×	-0.8×	Jun 30, 2005
2004	$19.3B	$1.19B	16.2×	+5.1×	Jun 30, 2004
2003	$15.9B	$1.43B	11.1×	-4.6×	Jun 30, 2003
2002	$20B	$1.28B	15.7×	—	Jun 30, 2002


Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×
IBM (IBM)	0.0×

P/FCF Ratio for Automatic Data Processing (ADP) 2002-2026

P/FCF Ratio daily chart for Automatic Data Processing (ADP)

Historical P/FCF Ratio for Automatic Data Processing (ADP) from 2002 to 2025

About P/FCF Ratio at Automatic Data Processing (ADP)

Automatic Data Processing P/FCF Ratio by Year

Automatic Data Processing P/FCF Ratio 2025: 26.2×

Automatic Data Processing P/FCF Ratio 2024: 26.8×

Automatic Data Processing P/FCF Ratio 2023: 24.9×

Automatic Data Processing P/FCF Ratio 2022: 34.3×

Automatic Data Processing P/FCF Ratio 2021: 32.5×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

Automatic Data Processing (ADP) Key Financials