Automatic Data Processing Inc., FCFF calculation

USD $ in thousands

	12 months ended	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	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 2016 to 2017 and from 2017 to 2018.

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

USD $ in thousands

	12 months ended	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	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

2018 Calculations

² 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 (USD $ in thousands)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Accenture PLC
EV/FCFF, Sector
Support Services
EV/FCFF, Industry
Industrials

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, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	Selected Financial Data (USD $ in thousands)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Accenture PLC
	EV/FCFF, Sector
	Support Services
	EV/FCFF, Industry
	Industrials

2018 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

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 increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

	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)