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Automatic Data Processing (BUE:ADP) Cyclically Adjusted Price-to-FCF : 40.48 (As of May. 17, 2024)


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What is Automatic Data Processing Cyclically Adjusted Price-to-FCF?

As of today (2024-05-17), Automatic Data Processing's current share price is ARS45418.00. Automatic Data Processing's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was ARS1,122.06. Automatic Data Processing's Cyclically Adjusted Price-to-FCF for today is 40.48.

The historical rank and industry rank for Automatic Data Processing's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BUE:ADP' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 21.93   Med: 36.83   Max: 54.02
Current: 40.12

During the past years, Automatic Data Processing's highest Cyclically Adjusted Price-to-FCF was 54.02. The lowest was 21.93. And the median was 36.83.

BUE:ADP's Cyclically Adjusted Price-to-FCF is ranked worse than
77.35% of 362 companies
in the Business Services industry
Industry Median: 18.765 vs BUE:ADP: 40.12

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Automatic Data Processing's adjusted free cash flow per share data for the three months ended in Mar. 2024 was ARS5,483.099. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is ARS1,122.06 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Automatic Data Processing Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Automatic Data Processing's Cyclically Adjusted Price-to-FCF can be seen below:

* 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.

* Premium members only.

Automatic Data Processing Cyclically Adjusted Price-to-FCF Chart

Automatic Data Processing Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.81 37.10 44.13 41.21 38.07

Automatic Data Processing Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.71 38.07 41.00 38.96 40.07

Competitive Comparison of Automatic Data Processing's Cyclically Adjusted Price-to-FCF

For the Staffing & Employment Services subindustry, Automatic Data Processing's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Automatic Data Processing's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Cyclically Adjusted Price-to-FCF falls into.



Automatic Data Processing Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Automatic Data Processing's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=45418.00/1122.06
=40.48

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Automatic Data Processing's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=5483.099/131.7762*131.7762
=5,483.099

Current CPI (Mar. 2024) = 131.7762.

Automatic Data Processing Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 17.726 100.560 23.229
201409 10.424 100.428 13.678
201412 5.131 99.070 6.825
201503 29.131 99.621 38.534
201506 16.043 100.684 20.997
201509 0.327 100.392 0.429
201512 16.995 99.792 22.442
201603 40.683 100.470 53.360
201606 34.725 101.688 45.000
201609 14.671 101.861 18.980
201612 27.523 101.863 35.606
201703 49.237 102.862 63.077
201706 23.827 103.349 30.381
201709 8.010 104.136 10.136
201712 27.775 104.011 35.189
201803 93.629 105.290 117.182
201806 66.725 106.317 82.703
201809 5.387 106.507 6.665
201812 117.075 105.998 145.547
201903 142.106 107.251 174.602
201906 126.220 108.070 153.908
201909 73.934 108.329 89.936
201912 158.559 108.420 192.716
202003 283.696 108.902 343.286
202006 178.349 108.767 216.077
202009 124.999 109.815 149.997
202012 226.574 109.897 271.683
202103 461.584 111.754 544.281
202106 236.947 114.631 272.386
202109 -3.322 115.734 -3.782
202112 462.496 117.630 518.118
202203 418.245 121.301 454.363
202206 442.092 125.017 465.995
202209 390.886 125.227 411.330
202212 610.581 125.222 642.540
202303 1,185.680 127.348 1,226.911
202306 1,210.777 128.729 1,239.441
202309 338.781 129.860 343.781
202312 1,573.347 129.419 1,601.999
202403 5,483.099 131.776 5,483.099

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Automatic Data Processing  (BUE:ADP) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Automatic Data Processing Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Automatic Data Processing's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Automatic Data Processing (BUE:ADP) Business Description

Address
One ADP Boulevard, Roseland, NJ, USA, 07068
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.