Accenture PLC, FCFF calculation

US$ in thousands

12 months ended:	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
Net income attributable to Accenture plc	6,871,557)	6,877,169)	5,906,809)	5,107,839)	4,779,112)	4,059,907)
Net income attributable to noncontrolling interests	131,973)	111,791)	83,736)	77,474)	67,129)	154,687)
Net noncash charges	3,706,101)	3,358,736)	2,952,274)	2,898,014)	1,802,131)	2,005,293)
Change in assets and liabilities, net of acquisitions	(1,185,363)	(806,567)	32,329)	131,825)	(21,419)	(193,196)
Net cash provided by operating activities	9,524,268)	9,541,129)	8,975,148)	8,215,152)	6,626,953)	6,026,691)
Interest paid, net of tax¹	35,623)	34,937)	27,894)	21,797)	17,534)	15,148)
Purchases of property and equipment	(528,172)	(717,998)	(580,132)	(599,132)	(599,009)	(619,187)
Free cash flow to the firm (FCFF)	9,031,719)	8,858,068)	8,422,910)	7,637,817)	6,045,478)	5,422,652)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Accenture PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Accenture PLC FCFF increased from 2021 to 2022 and from 2022 to 2023.

Accenture PLC, interest paid, net of tax calculation

US$ in thousands

12 months ended:	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	23.40%	24.00%	22.80%	23.50%	22.50%	23.00%
Interest Paid, Net of Tax
Interest paid, before tax	46,505)	45,970)	36,132)	28,493)	22,624)	19,673)
Less: Interest paid, tax²	10,882)	11,033)	8,238)	6,696)	5,090)	4,525)
Interest paid, net of tax	35,623)	34,937)	27,894)	21,797)	17,534)	15,148)

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

¹ See details »

² 2023 Calculation
Interest paid, tax = Interest paid × EITR
= 46,505 × 23.40% = 10,882

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	189,094,416)
Free cash flow to the firm (FCFF)	9,031,719)
Valuation Ratio
EV/FCFF	20.94
Benchmarks
EV/FCFF, Competitors¹
Adobe Inc.	29.82
International Business Machines Corp.	15.26
Intuit Inc.	36.06
Microsoft Corp.	51.84
Oracle Corp.	34.59
Palo Alto Networks Inc.	35.72
Salesforce Inc.	27.20
ServiceNow Inc.	54.96
Synopsys Inc.	52.10
EV/FCFF, Sector
Software & Services	40.70
EV/FCFF, Industry
Information Technology	41.77

Based on: 10-K (reporting date: 2023-08-31).

¹ Click competitor name to see calculations.

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

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

	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019	Aug 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	182,983,124)	150,491,593)	208,543,405)	136,712,951)	111,783,442)	93,162,573)
Free cash flow to the firm (FCFF)²	9,031,719)	8,858,068)	8,422,910)	7,637,817)	6,045,478)	5,422,652)
Valuation Ratio
EV/FCFF³	20.26	16.99	24.76	17.90	18.49	17.18
Benchmarks
EV/FCFF, Competitors⁴
Adobe Inc.	37.75	20.82	33.61	40.43	40.48	31.36
International Business Machines Corp.	15.27	16.47	13.10	9.35	12.86	—
Intuit Inc.	31.28	32.85	48.64	37.90	33.30	27.69
Microsoft Corp.	41.75	32.31	38.37	33.99	26.37	23.99
Oracle Corp.	35.83	31.60	16.36	14.99	14.03	11.11
Palo Alto Networks Inc.	28.15	29.29	32.74	26.50	20.44	22.33
Salesforce Inc.	28.41	35.97	44.91	39.63	41.21	—
ServiceNow Inc.	56.49	40.86	60.13	83.74	67.96	—
Synopsys Inc.	55.87	30.82	38.59	42.88	33.32	37.07
EV/FCFF, Sector
Software & Services	35.26	29.16	31.90	27.10	23.26	—
EV/FCFF, Industry
Information Technology	34.25	27.01	27.93	24.12	19.69	—

Based on: 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 182,983,124 ÷ 9,031,719 = 20.26

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Accenture PLC EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Accenture PLC (NYSE:ACN)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical