Discounted Cash Flow (DCF) Analysis Levered
Automatic Data Processing, Inc. (ADP)
$225.08
-1.69 (-0.75%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 13,325.80 | 14,175.20 | 14,589.80 | 15,005.40 | 16,046.50 | 16,812.15 | 17,614.32 | 18,454.78 | 19,335.33 | 20,257.90 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,515.20 | 2,688.30 | 3,026.20 | 3,093.30 | 3,099.50 | 3,312.39 | 3,470.43 | 3,636.02 | 3,809.51 | 3,991.28 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -470.80 | -566.50 | -616.40 | -505.90 | -553.40 | -624.55 | -654.35 | -685.57 | -718.29 | -752.56 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,044.40 | 2,121.80 | 2,409.80 | 2,587.40 | 2,546.10 | 2,687.83 | 2,816.08 | 2,950.45 | 3,091.22 | 3,238.72 |
Weighted Average Cost Of Capital
| Share price | $ 225.08 |
|---|---|
| Beta | 0.828 |
| Diluted Shares Outstanding | 421.10 |
| Cost of Debt | |
| Tax Rate | 22.48 |
| After-tax Cost of Debt | 1.81% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.550 |
| Total Debt | 3,494.40 |
| Total Equity | 94,781.19 |
| Total Capital | 98,275.59 |
| Debt Weighting | 3.56 |
| Equity Weighting | 96.44 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 13,325.80 | 14,175.20 | 14,589.80 | 15,005.40 | 16,046.50 | 16,812.15 | 17,614.32 | 18,454.78 | 19,335.33 | 20,257.90 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,515.20 | 2,688.30 | 3,026.20 | 3,093.30 | 3,099.50 | 3,312.39 | 3,470.43 | 3,636.02 | 3,809.51 | 3,991.28 |
| Capital Expenditure | -470.80 | -566.50 | -616.40 | -505.90 | -553.40 | -624.55 | -654.35 | -685.57 | -718.29 | -752.56 |
| Free Cash Flow | 2,044.40 | 2,121.80 | 2,409.80 | 2,587.40 | 2,546.10 | 2,687.83 | 2,816.08 | 2,950.45 | 3,091.22 | 3,238.72 |
| WACC | ||||||||||
| PV LFCF | 2,503.80 | 2,443.66 | 2,384.96 | 2,327.68 | 2,271.76 | |||||
| SUM PV LFCF | 11,931.87 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.35 |
| Free cash flow (t + 1) | 3,303.49 |
| Terminal Value | 61,747.56 |
| Present Value of Terminal Value | 43,312.13 |
Intrinsic Value
| Enterprise Value | 55,244 |
|---|---|
| Net Debt | 2,058.10 |
| Equity Value | 53,185.90 |
| Shares Outstanding | 421.10 |
| Equity Value Per Share | 126.30 |