Stock Analysis on Net

Accenture PLC (NYSE:ACN)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

Accenture PLC, current price multiples

Microsoft Excel LibreOffice Calc
Accenture PLC Adobe Inc. International Business Machines Corp. Intuit Inc. Mastercard Inc. Microsoft Corp. Oracle Corp. PayPal Holdings Inc. Salesforce Inc. ServiceNow Inc. Visa Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $310.33
No. shares of common stock outstanding 633,051,546
Growth rate (g) 22.85%
 
Earnings per share (EPS) $9.33
Next year expected EPS $11.46
Operating profit per share $12.04
Sales per share $79.83
Book value per share (BVPS) $30.85
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 33.26 42.15 20.36 63.85 39.18 28.74 30.34 26.70 130.75 434.70 35.85 33.53 29.12
Price to next year expected earnings 27.07 33.22 19.30 47.64 21.26 23.82 21.55 23.07 127.40 407.62 29.52 27.98 23.81
Price-earnings-growth (PEG) 1.46 1.57 3.71 1.88 0.46 1.39 0.74 1.69 49.71 65.44 1.67 1.69 1.31
Price to operating profit (P/OP) 25.78 35.03 17.03 52.66 33.76 25.07 18.65 26.12 344.53 389.03 27.92 29.72 25.69
Price to sales (P/S) 3.89 12.88 2.04 13.67 18.02 10.54 4.80 4.39 7.13 16.96 18.31 9.43 7.66
Price to book value (P/BV) 10.06 13.74 6.19 13.34 46.54 12.55 5.12 3.25 27.06 11.74 12.80 12.33

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Accenture PLC, historical price multiples

Microsoft Excel LibreOffice Calc
Aug 31, 2021 Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016
Price to earnings (P/E) 36.58 28.32 24.58 24.10 26.18 18.07
Price to operating profit (P/OP) 28.35 22.21 18.63 16.75 19.47 15.44
Price to sales (P/S) 4.28 3.26 2.72 2.35 2.45 2.13
Price to book value (P/BV) 11.06 8.51 8.15 9.44 10.08 9.83

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Accenture PLC P/E ratio increased from 2019 to 2020 and from 2020 to 2021.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Accenture PLC P/OP ratio increased from 2019 to 2020 and from 2020 to 2021.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Accenture PLC P/S ratio increased from 2019 to 2020 and from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Accenture PLC P/BV ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
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$)
Net income attributable to Accenture plc (in thousands) 5,906,809  5,107,839  4,779,112  4,059,907  3,445,149  4,111,892 
Earnings per share (EPS)2 9.34 8.06 7.52 6.35 5.42 6.40
Share price1, 3 341.82 228.14 184.80 153.12 141.97 115.67
Valuation Ratio
P/E ratio4 36.58 28.32 24.58 24.10 26.18 18.07
Benchmarks
P/E Ratio, Competitors5
Adobe Inc. 48.90 41.69 57.17 46.11 57.41 46.80
International Business Machines Corp. 19.40 19.30 13.35 14.25 25.07
Intuit Inc. 75.17 49.52 48.17 46.88 37.26 29.60
Mastercard Inc. 41.61 52.84 42.21 38.62 46.33
Microsoft Corp. 35.14 35.04 26.86 50.00 26.25
Oracle Corp. 15.84 16.69 16.89 45.90 22.49
PayPal Holdings Inc. 34.73 75.10 57.19 51.82 50.54
Salesforce Inc. 48.20 1,204.70 107.70 731.11 324.94
ServiceNow Inc. 487.70 978.47 106.89
Visa Inc. 34.83 40.76 32.08 30.03 37.19 30.68
P/E Ratio, Sector
Software & Services 35.22 38.84 29.82 39.44 31.77
P/E Ratio, Industry
Information Technology 29.34 33.01 24.22 23.79 24.47

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 2021 Calculation
EPS = Net income attributable to Accenture plc ÷ No. shares of common stock outstanding
= 5,906,809,000 ÷ 632,153,357 = 9.34

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 341.82 ÷ 9.34 = 36.58

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Accenture PLC P/E ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
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$)
Operating income (in thousands) 7,621,529  6,513,644  6,305,074  5,841,041  4,632,609  4,810,445 
Operating profit per share2 12.06 10.27 9.92 9.14 7.29 7.49
Share price1, 3 341.82 228.14 184.80 153.12 141.97 115.67
Valuation Ratio
P/OP ratio4 28.35 22.21 18.63 16.75 19.47 15.44
Benchmarks
P/OP Ratio, Competitors5
Adobe Inc. 40.64 51.75 51.63 42.06 44.86 36.62
International Business Machines Corp. 16.23 15.90 11.94 9.41 12.22
Intuit Inc. 62.00 41.56 40.45 37.92 25.94 23.33
Mastercard Inc. 35.85 41.92 35.46 31.07 27.39
Microsoft Corp. 30.79 29.30 24.54 23.63 24.93
Oracle Corp. 14.31 12.17 13.83 12.83 16.52
PayPal Holdings Inc. 33.98 95.94 51.72 48.58 42.65
Salesforce Inc. 431.39 511.08 223.46 395.31 908.77
ServiceNow Inc. 436.46 583.07 1,590.30
Visa Inc. 27.13 31.45 25.83 23.88 20.52 23.32
P/OP Ratio, Sector
Software & Services 31.22 32.42 26.18 23.02 22.96
P/OP Ratio, Industry
Information Technology 25.89 28.16 20.96 17.07 18.23

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 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 7,621,529,000 ÷ 632,153,357 = 12.06

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 341.82 ÷ 12.06 = 28.35

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Accenture PLC P/OP ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
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$)
Revenues (in thousands) 50,533,389  44,327,039  43,215,013  41,603,428  36,765,478  34,797,661 
Sales per share2 79.94 69.91 67.98 65.11 57.88 54.19
Share price1, 3 341.82 228.14 184.80 153.12 141.97 115.67
Valuation Ratio
P/S ratio4 4.28 3.26 2.72 2.35 2.45 2.13
Benchmarks
P/S Ratio, Competitors5
Adobe Inc. 14.94 17.04 15.11 13.23 13.32 9.34
International Business Machines Corp. 1.94 1.47 1.63 1.56 1.82
Intuit Inc. 16.09 11.78 11.05 9.52 6.99 6.17
Mastercard Inc. 19.14 22.14 20.30 15.13 14.51
Microsoft Corp. 12.81 10.85 8.38 7.51 6.19
Oracle Corp. 5.38 4.33 4.74 4.41 5.56
PayPal Holdings Inc. 5.71 14.71 7.91 6.90 6.93
Salesforce Inc. 9.24 8.88 9.00 8.89 6.96
ServiceNow Inc. 19.02 25.66 19.36 16.63 14.55
Visa Inc. 17.79 20.27 16.86 15.01 13.57 12.19
P/S Ratio, Sector
Software & Services 9.91 9.10 7.37 6.22 5.61
P/S Ratio, Industry
Information Technology 7.72 7.35 5.62 4.71 4.57

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 2021 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 50,533,389,000 ÷ 632,153,357 = 79.94

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 341.82 ÷ 79.94 = 4.28

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Accenture PLC P/S ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
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$)
Total Accenture plc shareholders’ equity (in thousands) 19,529,454  17,000,536  14,409,008  10,364,753  8,949,477  7,555,262 
Book value per share (BVPS)2 30.89 26.81 22.67 16.22 14.09 11.76
Share price1, 3 341.82 228.14 184.80 153.12 141.97 115.67
Valuation Ratio
P/BV ratio4 11.06 8.51 8.15 9.44 10.08 9.83
Benchmarks
P/BV Ratio, Competitors5
Adobe Inc. 15.94 16.53 16.03 12.76 11.50 7.37
International Business Machines Corp. 5.90 5.24 6.04 7.40 8.20
Intuit Inc. 15.71 17.71 20.00 24.12 26.72 24.96
Mastercard Inc. 49.43 53.00 58.15 41.94 33.17
Microsoft Corp. 15.16 13.11 10.30 10.02 7.69
Oracle Corp. 41.57 14.01 8.59 3.84 3.90
PayPal Holdings Inc. 6.66 15.76 8.33 6.93 5.67
Salesforce Inc. 4.73 4.48 7.66 9.93 7.78
ServiceNow Inc. 30.36 40.91 31.48 39.04 48.15
Visa Inc. 11.41 12.23 11.17 9.10 7.61 5.59
P/BV Ratio, Sector
Software & Services 13.45 12.77 11.20 9.38 7.75
P/BV Ratio, Industry
Information Technology 12.42 11.55 8.90 7.33 5.73

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 2021 Calculation
BVPS = Total Accenture plc shareholders’ equity ÷ No. shares of common stock outstanding
= 19,529,454,000 ÷ 632,153,357 = 30.89

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 341.82 ÷ 30.89 = 11.06

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Accenture PLC P/BV ratio increased from 2019 to 2020 and from 2020 to 2021.