Automatic Data Processing Inc., FCFF calculation

US$ in thousands

	12 months ended	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Net earnings
	Net noncash charges
	Changes in operating assets and liabilities, net of effects from acquisitions and divestitures of businesses
	Net cash flows provided by operating activities
	Cash paid for interest, net of tax¹
	Capital expenditures
	Additions to intangibles
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Automatic Data Processing Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Automatic Data Processing Inc.’s FCFF increased from 2017 to 2018 and from 2018 to 2019.

Automatic Data Processing Inc., interest paid, net of tax calculation

US$ in thousands

	12 months ended	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Effective Income Tax Rate (EITR)
	EITR¹
	Interest Paid, Net of Tax
	Cash paid for interest, before tax
	Less: Cash paid for interest, tax²
	Cash paid for interest, net of tax

² 2019 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= hidden × hidden = hidden

Automatic Data Processing Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC
EV/FCFF, Sector
Support Services
EV/FCFF, Industry
Industrials

¹ Click competitor name to see calculations.

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Automatic Data Processing Inc., historical EV/FCFF calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	Selected Financial Data (US$ in thousands)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors⁴
	Accenture PLC
	EV/FCFF, Sector
	Support Services
	EV/FCFF, Industry
	Industrials

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

⁴ Click competitor name to see calculations.

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Automatic Data Processing Inc.’s EV/FCFF ratio declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

	Automatic Data Processing Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Automatic Data Processing Inc. (ADP)

Enterprise Value to FCFF (EV/FCFF)