Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Accenture PLC, FCFE calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-08-31).
- Operating Cash Flow
- The net cash provided by operating activities exhibits a consistent upward trend from 2019 to 2022, increasing from approximately $6.63 billion to $9.54 billion. This indicates improving operational performance and cash generation capabilities over this period. However, in 2023 and 2024, there is a slight decline observed, with values decreasing to about $9.52 billion and $9.13 billion, respectively. Despite this reduction, the level remains significantly higher than in earlier years, indicating strong ongoing cash generation capacity.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity shows steady growth over the entire period analyzed. Starting at approximately $6.02 billion in 2019, it increases consistently each year, reaching around $9.44 billion by 2024. This continuous increase suggests a healthy and growing ability to generate cash available to shareholders after accounting for capital expenditures and other investments. The steady rise in FCFE aligns with the overall positive operational cash flow trends, reinforcing the company's capacity to return value to equity holders.
- Overall Insights
- The data indicates improving cash generation efficiency up to 2022, with a mild contraction in operating cash flows thereafter, possibly signaling shifts in operational dynamics or increased working capital requirements. Meanwhile, the sustained growth in free cash flow to equity throughout the period suggests successful management of capital expenditures and financial commitments, resulting in enhanced shareholder value. The divergence between operating cash flow and FCFE in the later years may merit further investigation to understand underlying factors such as investments, debt servicing, or changes in working capital.
Price to FCFE Ratio, Current
Accenture PLC, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 623,155,515 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 9,442,305) |
| FCFE per share | 15.15 |
| Current share price (P) | 236.81 |
| Valuation Ratio | |
| P/FCFE | 15.63 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Adobe Inc. | 15.16 |
| Cadence Design Systems Inc. | 32.34 |
| CrowdStrike Holdings Inc. | 104.57 |
| Datadog Inc. | 31.06 |
| Fair Isaac Corp. | 39.24 |
| International Business Machines Corp. | 20.97 |
| Intuit Inc. | 30.20 |
| Microsoft Corp. | 60.40 |
| Oracle Corp. | 167.51 |
| Palantir Technologies Inc. | 353.93 |
| Palo Alto Networks Inc. | 53.78 |
| Salesforce Inc. | 21.03 |
| ServiceNow Inc. | 57.44 |
| Synopsys Inc. | 65.45 |
| Workday Inc. | 26.71 |
| P/FCFE, Sector | |
| Software & Services | 47.69 |
| P/FCFE, Industry | |
| Information Technology | 49.98 |
Based on: 10-K (reporting date: 2024-08-31).
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
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 625,163,402 | 627,937,555 | 630,580,797 | 632,153,357 | 634,093,454 | 635,672,438 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 9,442,305) | 9,096,096) | 8,823,131) | 8,387,218) | 7,609,301) | 6,023,172) | |
| FCFE per share3 | 15.10 | 14.49 | 13.99 | 13.27 | 12.00 | 9.48 | |
| Share price1, 4 | 361.07 | 304.36 | 250.07 | 341.82 | 228.14 | 184.80 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 23.91 | 21.01 | 17.87 | 25.76 | 19.01 | 19.50 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Adobe Inc. | 18.02 | 41.83 | 21.32 | 34.26 | 41.36 | 41.90 | |
| Cadence Design Systems Inc. | 24.08 | 71.40 | 33.41 | 36.31 | 45.86 | — | |
| CrowdStrike Holdings Inc. | 85.82 | 42.65 | 99.63 | 41.38 | 880.68 | — | |
| Datadog Inc. | 28.64 | 71.93 | 69.38 | 202.25 | 41.33 | — | |
| Fair Isaac Corp. | 53.56 | 49.48 | 10.12 | 12.69 | 38.46 | 32.51 | |
| International Business Machines Corp. | 20.90 | 9.97 | 11.97 | 48.45 | 9.43 | — | |
| Intuit Inc. | 38.43 | 38.74 | 13.86 | 86.74 | 17.36 | — | |
| Microsoft Corp. | 42.11 | 43.32 | 36.73 | 42.54 | 42.74 | — | |
| Oracle Corp. | 48.38 | 15.47 | — | 8.36 | 6.27 | — | |
| Palantir Technologies Inc. | 256.11 | 74.28 | 96.89 | 198.12 | — | — | |
| Palo Alto Networks Inc. | 52.90 | 79.75 | 29.54 | 32.91 | 8.11 | — | |
| Salesforce Inc. | 38.33 | 31.06 | 16.56 | 49.52 | 50.40 | — | |
| ServiceNow Inc. | 61.82 | 58.19 | 44.44 | 64.54 | 49.83 | — | |
| Synopsys Inc. | 63.08 | 57.04 | 33.41 | 40.55 | 45.07 | 77.64 | |
| Workday Inc. | 36.59 | 19.79 | 49.17 | 40.57 | 74.21 | — | |
| P/FCFE, Sector | |||||||
| Software & Services | 39.85 | 33.04 | 30.98 | 34.09 | 26.85 | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 36.62 | 33.24 | 26.89 | 27.39 | 23.42 | — | |
Based on: 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), 10-K (reporting date: 2019-08-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,442,305,000 ÷ 625,163,402 = 15.10
4 Closing price as at the filing date of Accenture PLC Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 361.07 ÷ 15.10 = 23.91
6 Click competitor name to see calculations.
- Share Price Trend
- The share price shows a general upward trend over the observed period. It increased significantly from $184.8 in August 2019 to $341.82 in August 2021. This was followed by a decline to $250.07 in August 2022. Subsequently, there was a recovery with the share price rising to $304.36 in August 2023 and further reaching $361.07 in August 2024.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share exhibited consistent growth throughout the six-year period. Starting at $9.48 in August 2019, it increased steadily each year, reaching $15.10 by August 2024. This indicates ongoing improvement in the company's cash generation capacity attributable to equity holders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio fluctuated during the period without a clear linear trend. It began at 19.5 in August 2019 and slightly decreased to 19.01 in August 2020. The ratio then peaked at 25.76 in August 2021, reflecting a period where the share price grew faster relative to FCFE per share. Afterward, the ratio dropped significantly to 17.87 in August 2022, aligning with the share price decline. The ratio increased again to 21.01 in August 2023 and continued to 23.91 in August 2024.
- Insights
- The simultaneous increase in share price and FCFE per share generally indicates positive market sentiment toward the company’s ability to generate cash flows for equity holders. However, the volatility in the P/FCFE ratio suggests changing market perceptions of valuation, with periods of both premium and discount relative to the company’s free cash flow generation. The decline in price and P/FCFE ratio in 2022 points to a temporary adjustment or market uncertainty during that year, followed by recovery in subsequent years.