Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Accenture PLC, FCFE calculation

US$ in thousands

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12 months ended: Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Net income attributable to Accenture plc 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Net income attributable to noncontrolling interests 83,736  77,474  67,129  154,687  189,783  237,711 
Net noncash charges 2,952,274  2,898,014  1,802,131  2,005,293  1,782,174  650,639 
Change in assets and liabilities, net of acquisitions 32,329  131,825  (21,419) (193,196) (444,067) (425,127)
Net cash provided by operating activities 8,975,148  8,215,152  6,626,953  6,026,691  4,973,039  4,575,115 
Purchases of property and equipment (580,132) (599,132) (599,009) (619,187) (515,919) (496,566)
Proceeds from (repayments of) long-term debt, net (7,798) (6,719) (4,772) (4,195) (2,120) (1,059)
Free cash flow to equity (FCFE) 8,387,218  7,609,301  6,023,172  5,403,309  4,455,000  4,077,490 

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Accenture PLC equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Accenture PLC FCFE increased from 2019 to 2020 and from 2020 to 2021.

Price to FCFE Ratio, Current

Accenture PLC, current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 633,051,546
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 8,387,218 
FCFE per share 13.25
Current share price (P) 310.33
Valuation Ratio
P/FCFE 23.42
Benchmarks
P/FCFE, Competitors1
Adobe Inc. 29.54
International Business Machines Corp. 50.84
Intuit Inc. 73.68
Mastercard Inc. 33.95
Microsoft Corp. 37.25
Oracle Corp.
PayPal Holdings Inc. 20.82
Salesforce Inc. 15.96
ServiceNow Inc. 57.76
Visa Inc. 38.30
P/FCFE, Sector
Software & Services 32.07
P/FCFE, Industry
Information Technology 27.29

Based on: 10-K (reporting date: 2021-08-31).

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Accenture PLC, historical P/FCFE calculation, comparison to benchmarks

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Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
No. shares of common stock outstanding1 632,153,357 634,093,454 635,672,438 638,990,838 635,224,220 642,184,419
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 8,387,218  7,609,301  6,023,172  5,403,309  4,455,000  4,077,490 
FCFE per share3 13.27 12.00 9.48 8.46 7.01 6.35
Share price1, 4 341.82 228.14 184.80 153.12 141.97 115.67
Valuation Ratio
P/FCFE5 25.76 19.01 19.50 18.11 20.24 18.22
Benchmarks
P/FCFE, Competitors6
Adobe Inc. 34.26 41.36 41.90 19.87 35.56 27.41
International Business Machines Corp. 48.45 9.43 4.39 11.07 8.55
Intuit Inc. 86.74 17.36 34.61 29.29 42.22 21.01
Mastercard Inc. 36.06 32.34 35.41 33.72 35.79
Microsoft Corp. 42.54 42.74 30.77 37.57 8.86
Oracle Corp. 8.36 6.27 22.31 10.78 8.16
PayPal Holdings Inc. 27.08 34.78 20.59 18.96 33.80
Salesforce Inc. 49.52 50.40 29.09 52.51 25.44
ServiceNow Inc. 64.80 50.12 74.57 327.16 24.90
Visa Inc. 37.21 26.18 32.21 30.19 22.70 8.78
P/FCFE, Sector
Software & Services 33.69 27.10 23.79 24.95 12.84
P/FCFE, Industry
Information Technology 27.51 24.27 20.21 21.78 12.26

Based on: 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), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,387,218,000 ÷ 632,153,357 = 13.27

4 Closing price as at the filing date of Accenture PLC Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 341.82 ÷ 13.27 = 25.76

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Accenture PLC P/FCFE ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.