What is Automatic Data Processing Enterprise Value?
Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Automatic Data Processing's Enterprise Value is $124,548 Mil.
Automatic Data Processing's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 was $5,423 Mil. Therefore, Automatic Data Processing's EV-to-EBIT ratio for today is 22.97.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Automatic Data Processing's Enterprise Value
For the Software - Application subindustry, Automatic Data Processing's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Automatic Data Processing's Enterprise Value Distribution in the Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Enterprise Value falls into.
Automatic Data Processing Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Automatic Data Processing's Enterprise Value for the fiscal year that ended in Jun. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing (NAS:ADP) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Automatic Data Processing's EV-to-EBIT for today is
Automatic Data Processing's current Enterprise Value is $124,548 Mil.
Automatic Data Processing's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $5,423 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Automatic Data Processing's EV-to-EBITDA for today is:
Automatic Data Processing's current Enterprise Value is $124,548 Mil.
Automatic Data Processing's EBITDA for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $5,982 Mil.
Automatic Data Processing's current Enterprise Value is $124,548 Mil.
Automatic Data Processing's Revenue for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $18,447 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing Enterprise Value Related Terms
Thank you for viewing the detailed overview of Automatic Data Processing's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
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