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Accenture PLC (ACN)

Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner

  • Annual Data
  • Quarterly Data

    • Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

    Current Valuation Ratios

    Accenture PLC, current price multiples

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    Accenture PLC Automatic Data Processing Inc. Support Services Industrials
    Selected Financial Data
    Current share price (P) $ 158.28
    No. shares of common stock outstanding 641,412,840
    Growth rate (g) 33.68%
     
    Earnings per share (EPS) $ 5.37
    Next year expected EPS $ 7.18
    Operating profit per share $ 7.22
    Sales per share $ 54.33
    Book value per share (BVPS) $ 13.95
    Ratios (Price Multiples)
    Price to earnings (P/E) 29.47 38.76 31.74 28.27
    Price to next year expected earnings 22.04 34.22 25.86 25.77
    Price-earnings-growth (PEG) 0.88 2.92 1.40 2.91
    Price to operating profit (P/OP) 21.91 25.01 23.62 15.46
    Price to sales (P/S) 2.91 4.71 3.48 2.12
    Price to book value (P/BV) 11.34 18.16 12.71 5.96

    If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

    Otherwise, if 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

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    Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
    Price to earnings (P/E) 26.18 18.07 22.75 17.46 15.20 17.95
    Price to operating profit (P/OP) 19.47 15.44 15.66 11.94 11.50 11.84
    Price to sales (P/S) 2.59 2.26 2.24 1.71 1.75 1.64
    Price to book value (P/BV) 10.08 9.83 11.33 8.96 10.06 11.05
    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's P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
    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's P/OP ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
    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's P/S ratio increased from 2015 to 2016 and from 2016 to 2017.
    P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Accenture PLC's P/BV ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

    Price to Earnings (P/E)

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

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    Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
    No. shares of common stock outstanding1 635,224,220 642,184,419 648,101,194 655,502,521 666,014,836 679,888,683
    Selected Financial Data (USD $)
    Net income attributable to Accenture plc (in thousands) 3,445,149  4,111,892  3,053,581  2,941,498  3,281,878  2,553,510 
    Earnings per share (EPS)3 5.42 6.40 4.71 4.49 4.93 3.76
    Share price1, 2 141.97 115.67 107.20 78.35 74.91 67.41
    Ratio
    P/E ratio4 26.18 18.07 22.75 17.46 15.20 17.95
    Benchmarks
    P/E Ratio, Competitors
    Automatic Data Processing Inc. 28.56 27.41 25.75 25.73 24.69 –
    P/E Ratio, Sector
    Support Services 26.97 20.55 23.72 20.27 18.05 –
    P/E Ratio, Industry
    Industrials 28.48 22.75 23.39 18.71 18.53 –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Accenture PLC's Annual Report.

    2017 Calculations

    3 EPS = Net income attributable to Accenture plc ÷ No. shares of common stock outstanding
    = 3,445,149,000 ÷ 635,224,220 = 5.42

    4 P/E ratio = Share price ÷ EPS
    = 141.97 ÷ 5.42 = 26.18

    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's P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

    Price to Operating Profit (P/OP)

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

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    Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
    No. shares of common stock outstanding1 635,224,220 642,184,419 648,101,194 655,502,521 666,014,836 679,888,683
    Selected Financial Data (USD $)
    Operating income (in thousands) 4,632,609  4,810,445  4,435,869  4,300,512  4,338,680  3,871,548 
    Operating profit per share3 7.29 7.49 6.84 6.56 6.51 5.69
    Share price1, 2 141.97 115.67 107.20 78.35 74.91 67.41
    Ratio
    P/OP ratio4 19.47 15.44 15.66 11.94 11.50 11.84
    Benchmarks
    P/OP Ratio, Competitors
    Automatic Data Processing Inc. 21.27 18.67 18.57 17.67 17.38 –
    P/OP Ratio, Sector
    Support Services 20.07 16.45 16.57 13.89 13.35 –
    P/OP Ratio, Industry
    Industrials 15.57 15.55 12.60 11.54 11.05 –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Accenture PLC's Annual Report.

    2017 Calculations

    3 Operating profit per share = Operating income ÷ No. shares of common stock outstanding
    = 4,632,609,000 ÷ 635,224,220 = 7.29

    4 P/OP ratio = Share price ÷ Operating profit per share
    = 141.97 ÷ 7.29 = 19.47

    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's P/OP ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

    Price to Sales (P/S)

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

    Microsoft Excel LibreOffice Calc
    Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
    No. shares of common stock outstanding1 635,224,220 642,184,419 648,101,194 655,502,521 666,014,836 679,888,683
    Selected Financial Data (USD $)
    Revenues before reimbursements (Net revenues) (in thousands) 34,850,182  32,882,723  31,047,931  30,002,394  28,562,810  27,862,330 
    Sales per share3 54.86 51.20 47.91 45.77 42.89 40.98
    Share price1, 2 141.97 115.67 107.20 78.35 74.91 67.41
    Ratio
    P/S ratio4 2.59 2.26 2.24 1.71 1.75 1.64
    Benchmarks
    P/S Ratio, Competitors
    Automatic Data Processing Inc. 4.00 3.51 3.42 3.20 3.07 –
    P/S Ratio, Sector
    Support Services 2.96 2.59 2.55 2.14 2.12 –
    P/S Ratio, Industry
    Industrials 2.14 1.99 1.73 1.86 1.74 –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Accenture PLC's Annual Report.

    2017 Calculations

    3 Sales per share = Revenues before reimbursements (Net revenues) ÷ No. shares of common stock outstanding
    = 34,850,182,000 ÷ 635,224,220 = 54.86

    4 P/S ratio = Share price ÷ Sales per share
    = 141.97 ÷ 54.86 = 2.59

    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's P/S ratio increased from 2015 to 2016 and from 2016 to 2017.

    Price to Book Value (P/BV)

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

    Microsoft Excel LibreOffice Calc
    Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
    No. shares of common stock outstanding1 635,224,220 642,184,419 648,101,194 655,502,521 666,014,836 679,888,683
    Selected Financial Data (USD $)
    Total Accenture plc shareholders' equity (in thousands) 8,949,477  7,555,262  6,133,725  5,732,035  4,960,186  4,145,833 
    Book value per share (BVPS)3 14.09 11.76 9.46 8.74 7.45 6.10
    Share price1, 2 141.97 115.67 107.20 78.35 74.91 67.41
    Ratio
    P/BV ratio4 10.08 9.83 11.33 8.96 10.06 11.05
    Benchmarks
    P/BV Ratio, Competitors
    Automatic Data Processing Inc. 12.45 9.13 7.78 5.85 5.61 –
    P/BV Ratio, Sector
    Support Services 10.81 9.57 9.77 7.29 7.59 –
    P/BV Ratio, Industry
    Industrials 6.01 5.41 4.16 3.99 3.30 –

    1 Data adjusted for splits and stock dividends.

    2 Close price on the filing date of Accenture PLC's Annual Report.

    2017 Calculations

    3 BVPS = Total Accenture plc shareholders' equity ÷ No. shares of common stock outstanding
    = 8,949,477,000 ÷ 635,224,220 = 14.09

    4 P/BV ratio = Share price ÷ BVPS
    = 141.97 ÷ 14.09 = 10.08

    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's required rate of return and its actual rate of return. Accenture PLC's P/BV ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.