Calculating The Fair Value Of Automatic Data Processing, Inc. (NASDAQ:ADP)
Jan 20
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U.S. Professional Services Industry Analysis
UpdatedJan 22, 2025
DataAggregated Company Financials
Companies136
- 7D3.6%
- 3M1.6%
- 1Y13.4%
- YTD5.0%
Over the last 7 days, the Professional Services industry has risen 3.6%, driven by gains in Automatic Data Processing and Equifax of 2.2% and 7.9%, respectively. This means that the industry has gained 13% over the past year. Earnings are forecast to grow by 17% annually.
Industry Valuation and Performance
Has the U.S. Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 22 Jan 2025 | US$563.7b | US$246.2b | US$14.8b | 25.1x | 38.1x | 2.3x |
| Fri, 20 Dec 2024 | US$542.9b | US$245.0b | US$14.9b | 24x | 36.3x | 2.2x |
| Sun, 17 Nov 2024 | US$561.9b | US$247.7b | US$15.2b | 24.5x | 37x | 2.3x |
| Tue, 15 Oct 2024 | US$560.3b | US$241.2b | US$12.9b | 27.8x | 43.5x | 2.3x |
| Thu, 12 Sep 2024 | US$534.9b | US$234.8b | US$12.7b | 27.4x | 42.2x | 2.3x |
| Sat, 10 Aug 2024 | US$514.7b | US$234.8b | US$12.8b | 26.2x | 40.1x | 2.2x |
| Mon, 08 Jul 2024 | US$489.9b | US$237.9b | US$12.5b | 24.4x | 39.3x | 2.1x |
| Wed, 05 Jun 2024 | US$492.0b | US$238.6b | US$12.4b | 25.5x | 39.6x | 2.1x |
| Fri, 03 May 2024 | US$498.7b | US$238.3b | US$12.0b | 25.3x | 41.5x | 2.1x |
| Sun, 31 Mar 2024 | US$511.0b | US$233.7b | US$11.4b | 27.1x | 44.9x | 2.2x |
| Tue, 27 Feb 2024 | US$511.0b | US$232.8b | US$12.7b | 27.5x | 40.2x | 2.2x |
| Thu, 25 Jan 2024 | US$511.6b | US$237.0b | US$12.9b | 26.6x | 39.7x | 2.2x |
| Sat, 23 Dec 2023 | US$500.5b | US$237.0b | US$12.8b | 26.1x | 39.3x | 2.1x |
| Mon, 20 Nov 2023 | US$477.6b | US$236.5b | US$12.3b | 25.1x | 38.9x | 2x |
| Wed, 18 Oct 2023 | US$499.3b | US$239.1b | US$9.6b | 23.3x | 52.2x | 2.1x |
| Fri, 15 Sep 2023 | US$488.3b | US$230.9b | US$9.7b | 23.4x | 50.5x | 2.1x |
| Sun, 13 Aug 2023 | US$503.9b | US$234.2b | US$9.2b | 23.2x | 54.9x | 2.2x |
| Tue, 11 Jul 2023 | US$460.5b | US$230.3b | US$9.1b | 21.3x | 50.4x | 2x |
| Thu, 08 Jun 2023 | US$477.9b | US$231.9b | US$9.5b | 22.7x | 50.4x | 2.1x |
| Sat, 06 May 2023 | US$454.8b | US$231.3b | US$9.7b | 21.5x | 46.7x | 2x |
| Mon, 03 Apr 2023 | US$464.2b | US$228.3b | US$10.6b | 23.3x | 43.6x | 2x |
| Wed, 01 Mar 2023 | US$255.8b | US$163.7b | US$2.9b | 20.4x | 88.5x | 1.6x |
| Fri, 27 Jan 2023 | US$262.9b | US$162.1b | US$3.4b | 21x | 77.8x | 1.6x |
| Sun, 25 Dec 2022 | US$250.2b | US$161.1b | US$3.4b | 20.2x | 72.7x | 1.6x |
| Tue, 22 Nov 2022 | US$259.6b | US$160.5b | US$4.0b | 20.5x | 65.6x | 1.6x |
| Thu, 20 Oct 2022 | US$237.4b | US$153.4b | US$8.3b | 17.6x | 28.7x | 1.5x |
| Sat, 17 Sep 2022 | US$244.9b | US$153.4b | US$8.2b | 17.6x | 29.7x | 1.6x |
| Mon, 15 Aug 2022 | US$272.0b | US$153.1b | US$8.2b | 18.8x | 33x | 1.8x |
| Wed, 13 Jul 2022 | US$245.9b | US$151.2b | US$7.4b | 17.2x | 33.4x | 1.6x |
| Fri, 10 Jun 2022 | US$256.8b | US$152.1b | US$7.6b | 17.8x | 34x | 1.7x |
| Sun, 08 May 2022 | US$265.1b | US$151.2b | US$7.6b | 17.5x | 34.8x | 1.8x |
| Tue, 05 Apr 2022 | US$295.8b | US$147.5b | US$7.3b | 20.1x | 40.6x | 2x |
| Thu, 03 Mar 2022 | US$315.8b | US$150.5b | US$10.7b | 21.4x | 29.4x | 2.1x |
| Sat, 29 Jan 2022 | US$323.5b | US$155.1b | US$8.0b | 21.6x | 40.5x | 2.1x |
Price to Earnings Ratio
40.5x
Current Industry PE
- Investors are pessimistic on the American Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 38.1x which is lower than its 3-year average PE of 44.7x.
- The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 23% per year over the last three years.
- Revenues for these companies have grown 17% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Industrials industry?
| US Market | 3.83% | |
| Industrials | 4.69% | |
| Professional Services | 3.62% | |
| Research and Consulting Services | 4.49% | |
| HR Services | 2.48% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 159x.
- Analysts are expecting annual earnings growth of 22.1%, which is higher than its past year's earnings growth of 16.0% per year.
- Investors are most pessimistic about the HR Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 29.8x.
Forecasted Growth
- Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 22% over the next 5 years.
- This is better than its past earnings growth rate of 16% per year.
- In contrast, the HR Services industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ADP Automatic Data Processing | US$298.15 | 2.2% +US$2.6b | 24.0% | PE31.6x | |
| EFX Equifax | US$272.27 | 7.9% +US$2.5b | 9.3% | PE60x | |
| PAYX Paychex | US$145.66 | 2.8% +US$1.4b | 18.6% | PE30.5x | |
| TRU TransUnion | US$96.36 | 7.2% +US$1.3b | 36.9% | PE83.8x | |
| LDOS Leidos Holdings | US$160.58 | 5.1% +US$1.0b | 45.2% | PE17.9x |
