Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Accenture PLC (NYSE:ACN)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Accenture PLC, EBITDA calculation

US$ in thousands

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12 months ended: Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
Net income attributable to Accenture plc 5,107,839  4,779,112  4,059,907  3,445,149  4,111,892  3,053,581 
Add: Net income attributable to noncontrolling interest 77,474  67,129  154,687  189,783  237,711  220,208 
Add: Income tax expense 1,589,018  1,405,556  1,593,499  981,100  1,253,969  1,136,741 
Earnings before tax (EBT) 6,774,331  6,251,797  5,808,093  4,616,032  5,603,572  4,410,530 
Add: Interest expense 33,071  22,963  19,539  15,545  16,258  14,578 
Earnings before interest and tax (EBIT) 6,807,402  6,274,760  5,827,632  4,631,577  5,619,830  4,425,108 
Add: Depreciation, amortization and other 1,773,124  892,760  926,776  801,789  729,052  645,923 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,580,526  7,167,520  6,754,408  5,433,366  6,348,882  5,071,031 

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Accenture PLC’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

Accenture PLC, current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in thousands)
Enterprise value (EV) 148,839,639 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,580,526 
Valuation Ratio
EV/EBITDA 17.35
Benchmarks
EV/EBITDA, Competitors1
Automatic Data Processing Inc. 19.44
Waste Management Inc. 14.18
EV/EBITDA, Sector
Support Services 19.07
EV/EBITDA, Industry
Industrials 16.30

Based on: 10-K (filing date: 2020-10-22).

1 Click competitor name to see calculations.

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

Enterprise Value to EBITDA Ratio, Historical

Accenture PLC, historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 136,712,951  111,783,442  93,162,573  86,838,705  70,034,332  65,654,515 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,580,526  7,167,520  6,754,408  5,433,366  6,348,882  5,071,031 
Valuation Ratio
EV/EBITDA3 15.93 15.60 13.79 15.98 11.03 12.95
Benchmarks
EV/EBITDA, Competitors4
Automatic Data Processing Inc. 15.40 20.62 22.12 16.64 15.40 15.19
Waste Management Inc. — 15.13 12.24 11.67 11.57 12.47
EV/EBITDA, Sector
Support Services — 16.67 14.93 14.76 12.09 —
EV/EBITDA, Industry
Industrials — 15.50 15.28 15.38 13.51 —

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 136,712,951 ÷ 8,580,526 = 15.93

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Accenture PLC’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.