Evaluating Automatic Data Processing Against Peers In Professional Services Industry
Portfolio Pulse from Benzinga Insights
Automatic Data Processing (ADP) has been evaluated against its peers in the Professional Services industry. The company's P/E ratio of 29.29 is significantly below the industry average, suggesting potential undervaluation. However, its P/B ratio of 28.23 and P/S ratio of 5.81 are above the industry average, indicating potential overvaluation. ADP's ROE of 21.57%, EBITDA of $1.25 billion, gross profit of $1.76 billion, and revenue growth of 6.03% are all higher than the industry average, indicating strong financial performance.
October 25, 2023 | 4:00 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
ADP's P/E ratio suggests potential undervaluation, while its P/B and P/S ratios suggest potential overvaluation. However, its ROE, EBITDA, gross profit, and revenue growth are all above industry average, indicating strong financial performance.
ADP's mixed valuation metrics (low P/E ratio but high P/B and P/S ratios) suggest that the market has mixed views about the company's valuation. However, its strong financial performance metrics (high ROE, EBITDA, gross profit, and revenue growth) suggest that the company is performing well financially, which could potentially offset any negative impact from its mixed valuation metrics.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100