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

Accenture PLC (NYSE:ACN)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Accenture PLC, FCFF 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 
Net income attributable to noncontrolling interests 77,474  67,129  154,687  189,783  237,711  220,208 
Net noncash charges 2,898,014  1,802,131  2,005,293  1,782,174  650,639  693,649 
Change in assets and liabilities, net of acquisitions 131,825  (21,419) (193,196) (444,067) (425,127) 124,699 
Net cash provided by operating activities 8,215,152  6,626,953  6,026,691  4,973,039  4,575,115  4,092,137 
Interest paid, net of tax1 21,740  17,534  15,148  12,160  12,637  10,989 
Purchases of property and equipment (599,132) (599,009) (619,187) (515,919) (496,566) (395,017)
Free cash flow to the firm (FCFF) 7,637,760  6,045,478  5,422,652  4,469,280  4,091,186  3,708,109 

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).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Accenture PLC’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Accenture PLC’s FCFF increased from 2018 to 2019 and from 2019 to 2020.

Interest Paid, Net of Tax

Accenture PLC, interest paid, net of tax calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
Effective Income Tax Rate (EITR)
EITR1 23.70% 22.50% 23.00% 22.80% 22.40% 25.80%
Interest Paid, Net of Tax
Interest paid, before tax 28,493  22,624  19,673  15,751  16,285  14,810 
Less: Interest paid, tax2 6,753  5,090  4,525  3,591  3,648  3,821 
Interest paid, net of tax 21,740  17,534  15,148  12,160  12,637  10,989 

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).

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2 2020 Calculation
Interest paid, tax = Interest paid × EITR
= 28,493 × 23.70% = 6,753

Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 148,839,639 
Free cash flow to the firm (FCFF) 7,637,760 
Valuation Ratio
EV/FCFF 19.49
Benchmarks
EV/FCFF, Competitors1
Automatic Data Processing Inc. 29.42
Waste Management Inc. 24.61
EV/FCFF, Sector
Support Services 26.61
EV/FCFF, Industry
Industrials 26.55

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

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.

Enterprise Value to FCFF Ratio, Historical

Accenture PLC, historical EV/FCFF 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 
Free cash flow to the firm (FCFF)2 7,637,760  6,045,478  5,422,652  4,469,280  4,091,186  3,708,109 
Valuation Ratio
EV/FCFF3 17.90 18.49 17.18 19.43 17.12 17.71
Benchmarks
EV/FCFF, Competitors4
Automatic Data Processing Inc. 23.31 32.94 27.67 28.51 26.50 22.73
Waste Management Inc. — 26.26 23.99 23.83 21.71 21.71
EV/FCFF, Sector
Support Services — 23.25 21.03 22.22 20.07 —
EV/FCFF, Industry
Industrials — 25.25 23.44 25.45 24.09 —

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).

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2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 136,712,951 ÷ 7,637,760 = 17.90

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Accenture PLC’s EV/FCFF ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.