Automatic Data Processing Inc., current enterprise value calculation

Current share price (P)	$218.18
No. shares of common stock outstanding	417,747,152
US$ in thousands
Common equity (market value)¹	91,144,074)
Add: Preferred stock, $1.00 par value; issued, none (per books)	—)
Total equity	91,144,074)
Add: Obligations under reverse repurchase agreements (per books)	23,500)
Add: Short-term debt (per books)	—)
Add: Long-term debt (per books)	2,985,000)
Total equity and debt	94,152,574)
Less: Cash and cash equivalents	2,575,200)
Less: Funds held for clients	34,905,800)
Enterprise value (EV)	56,671,574)

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 218.18 × 417,747,152

Automatic Data Processing Inc., EV calculation

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Share price^1, 2	$212.00	$134.77	$167.73	$134.25	$111.39	$89.67
No. shares of common stock outstanding¹	423,080,556	429,965,405	433,942,837	438,082,756	444,374,752	456,176,951
US$ in thousands
Common equity (market value)³	89,693,078)	57,946,438)	72,785,232)	58,812,610)	49,498,904)	40,905,387)
Add: Preferred stock, $1.00 par value; issued, none (book value)	—)	—)	—)	—)	—)	—)
Total equity	89,693,078)	57,946,438)	72,785,232)	58,812,610)	49,498,904)	40,905,387)
Add: Obligations under reverse repurchase agreements (book value)	23,500)	13,600)	262,000)	—)	—)	—)
Add: Short-term debt (book value)	—)	1,001,800)	—)	—)	—)	—)
Add: Long-term debt (book value)	2,985,000)	1,002,800)	2,002,200)	2,002,400)	2,002,400)	2,007,700)
Total equity and debt	92,701,578)	59,964,638)	75,049,432)	60,815,010)	51,501,304)	42,913,087)
Less: Cash and cash equivalents	2,575,200)	1,908,500)	1,949,200)	2,170,000)	2,780,400)	3,191,100)
Less: Funds held for clients	34,905,800)	26,708,100)	29,434,200)	27,137,800)	27,291,500)	33,841,200)
Enterprise value (EV)	55,220,578)	31,348,038)	43,666,032)	31,507,210)	21,429,404)	5,880,787)

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Automatic Data Processing Inc. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 212.00 × 423,080,556

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Item	Description	The company
EV	Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.	Automatic Data Processing Inc. EV decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Automatic Data Processing Inc. (NASDAQ:ADP)

Enterprise Value (EV)