Accenture PLC (ACN)

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
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Accenture PLC, current price multiples

	Accenture PLC	Automatic Data Processing Inc.	Support Services	Industrials
Selected Financial Data
Current share price (P)	$ 157.45
No. shares of common stock outstanding	638,990,838
Growth rate (g)	30.48%

Earnings per share (EPS)	$ 6.35
Next year expected EPS	$ 8.29
Operating profit per share	$ 9.14
Sales per share	$ 61.93
Book value per share (BVPS)	$ 16.22
Ratios (Price Multiples)
Price to earnings (P/E)	24.78	37.63	31.21	25.62
Price to next year expected earnings	18.99	33.22	25.43	23.35
Price-earnings-growth (PEG)	0.81	2.84	1.37	2.64
Price to operating profit (P/OP)	17.22	24.28	23.22	14.01
Price to sales (P/S)	2.54	4.58	3.42	1.92
Price to book value (P/BV)	9.71	17.63	12.50	5.40

Based on: 10-K (filing date: 2018-10-24).

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.

Accenture PLC, historical price multiples

	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
Price to earnings (P/E)	24.10	26.18	18.07	22.75	17.46	15.20
Price to operating profit (P/OP)	16.75	19.47	15.44	15.66	11.94	11.50
Price to sales (P/S)	2.47	2.59	2.26	2.24	1.71	1.75
Price to book value (P/BV)	9.44	10.08	9.83	11.33	8.96	10.06

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

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 increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
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 increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 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 2016 to 2017 but then slightly declined from 2017 to 2018.
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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

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

	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
No. shares of common stock outstanding¹	638,990,838	635,224,220	642,184,419	648,101,194	655,502,521	666,014,836
Selected Financial Data (USD $)
Net income attributable to Accenture plc (in thousands)	4,059,907	3,445,149	4,111,892	3,053,581	2,941,498	3,281,878
Earnings per share (EPS)³	6.35	5.42	6.40	4.71	4.49	4.93
Share price^1, 2	153.12	141.97	115.67	107.20	78.35	74.91
Ratio
P/E ratio⁴	24.10	26.18	18.07	22.75	17.46	15.20
Benchmarks
P/E Ratio, Competitors
Automatic Data Processing Inc.	36.29	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

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

¹ Data adjusted for splits and stock dividends.

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

2018 Calculations

³ EPS = Net income attributable to Accenture plc ÷ No. shares of common stock outstanding
= 4,059,907,000 ÷ 638,990,838 = 6.35

⁴ P/E ratio = Share price ÷ EPS
= 153.12 ÷ 6.35 = 24.10

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 increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

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

	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
No. shares of common stock outstanding¹	638,990,838	635,224,220	642,184,419	648,101,194	655,502,521	666,014,836
Selected Financial Data (USD $)
Operating income (in thousands)	5,841,041	4,632,609	4,810,445	4,435,869	4,300,512	4,338,680
Operating profit per share³	9.14	7.29	7.49	6.84	6.56	6.51
Share price^1, 2	153.12	141.97	115.67	107.20	78.35	74.91
Ratio
P/OP ratio⁴	16.75	19.47	15.44	15.66	11.94	11.50
Benchmarks
P/OP Ratio, Competitors
Automatic Data Processing Inc.	23.42	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

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

¹ Data adjusted for splits and stock dividends.

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

2018 Calculations

³ Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,841,041,000 ÷ 638,990,838 = 9.14

⁴ P/OP ratio = Share price ÷ Operating profit per share
= 153.12 ÷ 9.14 = 16.75

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 increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

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

	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
No. shares of common stock outstanding¹	638,990,838	635,224,220	642,184,419	648,101,194	655,502,521	666,014,836
Selected Financial Data (USD $)
Revenues before reimbursements (Net revenues) (in thousands)	39,573,450	34,850,182	32,882,723	31,047,931	30,002,394	28,562,810
Sales per share³	61.93	54.86	51.20	47.91	45.77	42.89
Share price^1, 2	153.12	141.97	115.67	107.20	78.35	74.91
Ratio
P/S ratio⁴	2.47	2.59	2.26	2.24	1.71	1.75
Benchmarks
P/S Ratio, Competitors
Automatic Data Processing Inc.	4.41	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

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

¹ Data adjusted for splits and stock dividends.

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

2018 Calculations

³ Sales per share = Revenues before reimbursements (Net revenues) ÷ No. shares of common stock outstanding
= 39,573,450,000 ÷ 638,990,838 = 61.93

⁴ P/S ratio = Share price ÷ Sales per share
= 153.12 ÷ 61.93 = 2.47

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 2016 to 2017 but then slightly declined from 2017 to 2018.

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

	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
No. shares of common stock outstanding¹	638,990,838	635,224,220	642,184,419	648,101,194	655,502,521	666,014,836
Selected Financial Data (USD $)
Total Accenture plc shareholders' equity (in thousands)	10,364,753	8,949,477	7,555,262	6,133,725	5,732,035	4,960,186
Book value per share (BVPS)³	16.22	14.09	11.76	9.46	8.74	7.45
Share price^1, 2	153.12	141.97	115.67	107.20	78.35	74.91
Ratio
P/BV ratio⁴	9.44	10.08	9.83	11.33	8.96	10.06
Benchmarks
P/BV Ratio, Competitors
Automatic Data Processing Inc.	17.00	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

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

¹ Data adjusted for splits and stock dividends.

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

2018 Calculations

³ BVPS = Total Accenture plc shareholders' equity ÷ No. shares of common stock outstanding
= 10,364,753,000 ÷ 638,990,838 = 16.22

⁴ P/BV ratio = Share price ÷ BVPS
= 153.12 ÷ 16.22 = 9.44

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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)