Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Automatic Data Processing Inc. (NASDAQ:ADP)

Market Value Added (MVA)

Advanced level

Market value added (MVA) is the difference between a firms’s fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.


MVA

Automatic Data Processing Inc., MVA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Fair value of debt1 2,138,300  2,321,400  1,976,000  2,051,600  2,126,400  9,200 
Operating lease liability 439,900  542,858  484,694  428,436  445,608  320,900 
Market value of common equity 57,946,438  72,785,232  58,812,610  49,498,904  40,905,387  37,399,895 
Preferred stock, $1.00 par value; issued, none —  —  —  —  —  — 
Less: Marketable securities 13,600  271,900  10,500  10,800  31,300  55,500 
Market (fair) value of ADP 60,511,038  75,377,590  61,262,804  51,968,140  43,446,095  37,674,495 
Less: Invested capital2 9,580,300  9,463,158  7,289,794  7,519,836  7,921,908  6,104,700 
MVA 50,930,738  65,914,432  53,973,010  44,448,304  35,524,187  31,569,795 

Based on: 10-K (filing date: 2020-08-05), 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Automatic Data Processing Inc.’s market (fair) value less invested capital. Automatic Data Processing Inc.’s MVA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

MVA Spread Ratio

Automatic Data Processing Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 50,930,738  65,914,432  53,973,010  44,448,304  35,524,187  31,569,795 
Invested capital2 9,580,300  9,463,158  7,289,794  7,519,836  7,921,908  6,104,700 
Performance Ratio
MVA spread ratio3 531.62% 696.54% 740.39% 591.08% 448.43% 517.14%
Benchmarks
MVA Spread Ratio, Competitors4
Accenture PLC 550.21% 505.40% 481.52% 496.80% 458.38% 536.44%
Waste Management Inc. 197.52% 183.11% 164.33% 141.49% 104.44%

Based on: 10-K (filing date: 2020-08-05), 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 50,930,738 ÷ 9,580,300 = 531.62%

4 Click competitor name to see calculations.

Performance ratio Description The company
MVA spread ratio The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. Automatic Data Processing Inc.’s MVA spread ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

MVA Margin

Automatic Data Processing Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 50,930,738  65,914,432  53,973,010  44,448,304  35,524,187  31,569,795 
 
Revenues 14,589,800  14,175,200  13,325,800  12,379,800  11,667,800  10,938,500 
Add: Increase (decrease) in deferred revenues (36,900) (53,800) (20,000) 10,000  23,000  (21,000)
Adjusted revenues 14,552,900  14,121,400  13,305,800  12,389,800  11,690,800  10,917,500 
Performance Ratio
MVA margin2 349.97% 466.77% 405.64% 358.75% 303.86% 289.17%
Benchmarks
MVA Margin, Competitors3
Accenture PLC 279.96% 233.58% 202.17% 213.12% 181.64% 186.24%
Waste Management Inc. 289.12% 226.05% 200.51% 178.37% 135.11%

Based on: 10-K (filing date: 2020-08-05), 10-K (filing date: 2019-08-09), 10-K (filing date: 2018-08-03), 10-K (filing date: 2017-08-04), 10-K (filing date: 2016-08-05), 10-K (filing date: 2015-08-07).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 50,930,738 ÷ 14,552,900 = 349.97%

3 Click competitor name to see calculations.

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Automatic Data Processing Inc.’s MVA margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.