Stock Analysis on Net

Accenture PLC (NYSE:ACN)

$24.99

Price to FCFE (P/FCFE)

Microsoft Excel

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Free Cash Flow to Equity (FCFE)

Accenture PLC, FCFE calculation

US$ in thousands

Microsoft Excel
12 months ended: Aug 31, 2025 Aug 31, 2024 Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020
Net income attributable to Accenture plc
Net income attributable to noncontrolling interests
Net noncash charges
Change in assets and liabilities, net of acquisitions
Net cash provided by operating activities
Purchases of property and equipment
Proceeds from debt
Repayments of debt
Proceeds from (repayments of) debt, net (legacy)
Free cash flow to equity (FCFE)

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 provided by operating activities has overall exhibited a positive growth trend across the examined periods. Starting at approximately 8.22 billion USD, it increased steadily to reach around 9.54 billion USD by the 2022 fiscal year. Despite a slight decline noted in 2024 to about 9.13 billion USD, the figure surged significantly in 2025, peaking at approximately 11.47 billion USD. This pattern suggests strong operational cash generation capabilities, with a notable boost in the most recent year under review.
Free Cash Flow to Equity (FCFE)
Free cash flow to equity has mirrored the growth trajectory observed in operating cash flows. Beginning at roughly 7.61 billion USD, it progressively increased each year to approximately 9.44 billion USD by 2024. A substantial increase occurred in 2025, with FCFE rising sharply to around 15 billion USD. This escalation points to an enhanced capacity to return cash to equity holders, potentially indicating improved profitability, efficient capital expenditures management, or favorable financing conditions.
Overall Insights
The consistent increase in both operating cash flows and free cash flow to equity across most years reflects strong financial health and operational efficiency. The acceleration in the latest period for both metrics is particularly notable, suggesting a strategic or market-driven improvement that positively impacted liquidity and shareholder value potential. The temporary dip observed in net operating cash flow in 2024 may warrant a closer examination to understand any underlying causes, although it did not significantly dampen the upward trend overall.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)
FCFE per share
Current share price (P)
Valuation Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors1
Adobe Inc.
AppLovin Corp.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/FCFE, Sector
Software & Services
P/FCFE, Industry
Information Technology

Based on: 10-K (reporting date: 2025-08-31).

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

Microsoft Excel
Aug 31, 2025 Aug 31, 2024 Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020
No. shares of common stock outstanding1
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2
FCFE per share3
Share price1, 4
Valuation Ratio
P/FCFE5
Benchmarks
P/FCFE, Competitors6
Adobe Inc.
AppLovin Corp.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/FCFE, Sector
Software & Services
P/FCFE, Industry
Information Technology

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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =

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

5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =

6 Click competitor name to see calculations.


Share Price Trend
The share price exhibited considerable variability over the observed period. Initially, there was a significant increase from 228.14 US$ in 2020 to a peak of 341.82 US$ in 2021. This was followed by a decline in 2022 to 250.07 US$, then a recovery to 304.36 US$ in 2023 and a further rise to 361.07 US$ in 2024. However, in the later period of 2025, the share price dropped sharply to 240.94 US$.
Free Cash Flow to Equity (FCFE) per Share
FCFE per share showed a steady upward trend throughout the period. Beginning at 12 US$ in 2020, it increased gradually each year, reaching 15.1 US$ by 2024. In 2025, there was a notable jump to 24.18 US$, marking a significant acceleration in FCFE growth relative to prior years.
Price to FCFE Ratio (P/FCFE)
The P/FCFE ratio displayed fluctuations that inversely correspond to changes in the share price relative to FCFE per share. Starting at 19.01 in 2020, the ratio peaked at 25.76 in 2021, reflecting a high valuation relative to FCFE despite the rising FCFE per share. It then decreased to 17.87 in 2022, rose again to 23.91 in 2024, before markedly declining to 9.96 in 2025, indicating that the share price in 2025 was comparatively low relative to the substantially increased FCFE per share.
Overall Insights
The data suggests that while free cash flow to equity per share has generally increased steadily, the market valuation as reflected by share price and P/FCFE ratio has been more volatile. The sharp increase in FCFE per share in 2025, coupled with a significant drop in share price, led to a substantially lower P/FCFE ratio, which could indicate a potential undervaluation or a market adjustment relative to the company's cash flow generation capacity during that period.