Automatic Data Processing Inc. (ADP)

Price to FCFE (P/FCFE)

Medium level of difficulty

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Automatic Data Processing Inc., FCFE 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
	Capital expenditures
	Additions to intangibles
	Proceeds from debt issuance
	Payments of debt
	Net proceeds (repayments) from reverse repurchase agreements
	Net proceeds from issuance (repayments) of commercial paper
	Free cash flow to equity (FCFE)

Based on: 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), 10-K (filing date: 2014-08-08).

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Automatic Data Processing Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Automatic Data Processing Inc.’s FCFE increased from 2017 to 2018 and from 2018 to 2019.

Price to FCFE Ratio, Current

Automatic Data Processing Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors¹
Accenture PLC
P/FCFE, Sector
Support Services
P/FCFE, Industry
Industrials

Based on: 10-K (filing date: 2019-08-09).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Automatic Data Processing Inc., historical P/FCFE calculation, comparison to benchmarks

		Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014
	No. shares of common stock outstanding¹
	Selected Financial Data (US$)
	Free cash flow to equity (FCFE) (in thousands)²
	FCFE per share³
	Share price^1, 4
	Valuation Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors⁶
	Accenture PLC
	P/FCFE, Sector
	Support Services
	P/FCFE, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁴ Closing price as at the filing date of Automatic Data Processing Inc.’s Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
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⁶ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Automatic Data Processing Inc.’s P/FCFE 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
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

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