Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Accenture PLC, FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-08-31), 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).
- Net cash provided by operating activities
- The net cash generated from operating activities demonstrated an overall upward trend from the fiscal year ending August 31, 2020, through the projection for 2025. Beginning at approximately 8.22 billion, this figure increased annually, reaching around 11.47 billion by 2025. Notably, there was steady growth each year except for a slight dip projected for 2024, where the amount decreased marginally compared to the previous year. The consistent increase over the six-year period suggests improving operational cash efficiency and strength in core business cash flows.
- Free cash flow to the firm (FCFF)
- Free cash flow to the firm also showed a generally positive trend during the same period, starting at approximately 7.64 billion in 2020 and projecting to reach nearly 11.0 billion by 2025. Similar to operating cash flow, there was continuous growth year-over-year, with a small decrease anticipated in 2024 before rising again in 2025. The pattern reflects the company's ability to maintain healthy free cash flows after accounting for capital expenditures, indicating effective capital management and a capacity to fund operations and growth initiatives from internal cash generation.
- Overall insights
- Both operating cash flow and free cash flow to the firm exhibit robust and increasing trends, with minor fluctuations projected in the near term. The parallel movement of these two financial metrics highlights operational resilience and efficient use of cash resources. The data indicates strengthening financial health and suggests that the company is likely to sustain its liquidity and investment capabilities over the medium term. Slight dips in 2024 warrant attention but do not materially alter the positive trajectory observed across the analyzed period.
Interest Paid, Net of Tax
Accenture PLC, interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-08-31), 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).
2 2025 Calculation
Interest paid, tax = Interest paid × EITR
= 155,428 × 23.70% = 36,836
- Effective Income Tax Rate (EITR)
- The effective income tax rate has exhibited relative stability over the reported periods, fluctuating slightly within a narrow range. Starting at 23.5% in August 2020, it decreased marginally to 22.8% in August 2021. Subsequently, it increased to 24.0% in August 2022, followed by a minor reduction to 23.4% in August 2023. The rate remained nearly steady thereafter, recording 23.5% and 23.7% in August 2024 and 2025 respectively. This pattern indicates a consistent tax burden with no significant shifts in tax policy impact or tax planning effectiveness during these years.
- Interest Paid, Net of Tax (US$ in thousands)
- The net interest paid shows a rising trend from 2020 through 2023, starting at $21,797 thousand and increasing steadily to $35,623 thousand. In August 2024, there was a noticeable decrease to $28,444 thousand. However, in the latest period reported, August 2025, the interest paid surged sharply to $118,592 thousand, representing a significant increase compared to prior years. This sharp rise could suggest increased debt levels, changes in interest rates, or refinancing activities that have substantially elevated interest expenses net of tax implications.
Enterprise Value to FCFF Ratio, Current
Accenture PLC, current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 142,616,489) |
| Free cash flow to the firm (FCFF) | 10,992,952) |
| Valuation Ratio | |
| EV/FCFF | 12.97 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Adobe Inc. | 17.18 |
| AppLovin Corp. | 115.81 |
| Cadence Design Systems Inc. | 76.95 |
| CrowdStrike Holdings Inc. | 108.77 |
| Datadog Inc. | 65.39 |
| International Business Machines Corp. | 21.76 |
| Intuit Inc. | 29.45 |
| Microsoft Corp. | 52.27 |
| Oracle Corp. | 354.87 |
| Palantir Technologies Inc. | 365.83 |
| Palo Alto Networks Inc. | 39.23 |
| Salesforce Inc. | 17.94 |
| ServiceNow Inc. | 54.12 |
| Synopsys Inc. | 61.59 |
| Workday Inc. | 25.23 |
| EV/FCFF, Sector | |
| Software & Services | 46.56 |
| EV/FCFF, Industry | |
| Information Technology | 55.43 |
Based on: 10-K (reporting date: 2025-08-31).
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.
Enterprise Value to FCFF Ratio, Historical
Accenture PLC, historical EV/FCFF calculation, comparison to benchmarks
| Aug 31, 2025 | Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 144,198,615) | 222,622,344) | 182,983,124) | 150,491,593) | 208,543,405) | 136,712,951) | |
| Free cash flow to the firm (FCFF)2 | 10,992,952) | 8,642,962) | 9,031,719) | 8,858,068) | 8,422,910) | 7,637,817) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 13.12 | 25.76 | 20.26 | 16.99 | 24.76 | 17.90 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Adobe Inc. | — | 21.98 | 37.75 | 20.82 | 33.61 | 40.43 | |
| AppLovin Corp. | — | 63.01 | 19.50 | 13.94 | 43.78 | — | |
| Cadence Design Systems Inc. | — | 61.26 | 63.83 | 44.54 | 35.05 | 44.13 | |
| CrowdStrike Holdings Inc. | 67.26 | 81.46 | 38.65 | 96.35 | 141.44 | 807.14 | |
| Datadog Inc. | — | 52.45 | 68.76 | 66.00 | 198.40 | 346.45 | |
| International Business Machines Corp. | — | 20.11 | 15.27 | 16.47 | 13.10 | 9.35 | |
| Intuit Inc. | 29.77 | 36.79 | 31.28 | 32.85 | 48.64 | 37.90 | |
| Microsoft Corp. | 52.24 | 41.70 | 39.61 | 30.26 | 36.19 | 31.49 | |
| Oracle Corp. | 263.29 | 31.24 | 35.83 | 31.60 | 16.36 | 14.99 | |
| Palantir Technologies Inc. | — | 251.61 | 69.13 | 82.97 | 66.45 | — | |
| Palo Alto Networks Inc. | 35.88 | 34.69 | 28.15 | 29.30 | 32.74 | 26.50 | |
| Salesforce Inc. | 21.83 | 29.95 | 28.41 | 35.97 | 44.91 | 39.63 | |
| ServiceNow Inc. | — | 60.21 | 56.55 | 40.86 | 60.13 | 83.74 | |
| Synopsys Inc. | — | 56.23 | 55.87 | 30.82 | 38.59 | 42.88 | |
| Workday Inc. | 26.14 | 32.57 | 33.40 | 45.74 | 57.52 | 72.44 | |
| EV/FCFF, Sector | |||||||
| Software & Services | — | 38.23 | 34.89 | 28.82 | 32.02 | 27.40 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 39.07 | 33.99 | 26.34 | 27.38 | 23.71 | |
Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-08-31), 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).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 144,198,615 ÷ 10,992,952 = 13.12
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibits considerable fluctuation over the analyzed periods. It initially increases significantly from approximately $136.7 billion in 2020 to about $208.5 billion in 2021. Subsequently, it declines to approximately $150.5 billion in 2022, followed by a rise to roughly $183.0 billion in 2023 and further to $222.6 billion in 2024. By 2025, a marked decrease occurs, bringing the value down to around $144.2 billion. This pattern indicates volatility in the market's valuation of the firm, with peak valuation observed in 2024 and a notable contraction thereafter.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm shows a generally positive trend, increasing from about $7.6 billion in 2020 to nearly $9.0 billion in 2022. Growth then slows down, with slight increases through 2023, reaching approximately $9.0 billion. A minor dip appears in 2024, followed by a significant rebound to nearly $11.0 billion in 2025. This indicates sustained cash-generating ability with some variability, and a strong recovery in the most recent period analyzed.
- EV/FCFF Ratio
- The ratio of enterprise value to free cash flow to the firm (EV/FCFF) varies markedly over the period. Starting at 17.9 in 2020, it climbs to a peak of 25.76 in 2024, indicating that the market value placed on the firm relative to its cash flow was highest at that time. The ratio decreases substantially to 13.12 by 2025, suggesting a more attractive valuation in relation to cash flow or possibly increased cash flow relative to enterprise value. Fluctuations in this ratio reflect changes in market sentiment, valuation multiples, or underlying operational performance.
- Summary
- Overall, the data portray a company experiencing significant valuation volatility over the observed period, while maintaining a generally robust and somewhat growing cash flow generation capacity. The EV/FCFF ratio confirms periods of both high valuation relative to cash flow and phases of more conservative or value-oriented pricing by the market. The strong increase in free cash flow combined with a retreat in enterprise value towards the end suggests potential opportunities for investors or shifts in market expectations.