Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Accenture PLC (NYSE:ACN)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Accenture PLC, current price multiples

Microsoft Excel LibreOffice Calc
Accenture PLC Automatic Data Processing Inc. Waste Management Inc. Support Services Industrials
Selected Financial Data
Current share price (P) $254.77
No. shares of common stock outstanding 634,772,346
Growth rate (g) 24.07%
 
Earnings per share (EPS) $8.05
Next year expected EPS $9.98
Operating profit per share $10.26
Sales per share $69.83
Book value per share (BVPS) $26.78
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 31.66 28.16 29.19 32.02 30.99
Price to next year expected earnings 25.52 24.32 26.40 26.95 28.47
Price-earnings-growth (PEG) 1.32 1.79 2.76 1.70 3.51
Price to operating profit (P/OP) 24.83 22.11 18.02 23.26 16.96
Price to sales (P/S) 3.65 4.76 3.15 3.84 2.26
Price to book value (P/BV) 9.51 12.08 6.90 10.42 7.79

Based on: 10-K (filing date: 2020-10-22).

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, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
Price to earnings (P/E) 28.32 24.58 24.10 26.18 18.07 22.75
Price to operating profit (P/OP) 22.21 18.63 16.75 19.47 15.44 15.66
Price to sales (P/S) 3.26 2.72 2.35 2.45 2.13 2.11
Price to book value (P/BV) 8.51 8.15 9.44 10.08 9.83 11.33

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 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).

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’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
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 decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
No. shares of common stock outstanding1 634,093,454 635,672,438 638,990,838 635,224,220 642,184,419 648,101,194
Selected Financial Data (US$)
Net income attributable to Accenture plc (in thousands) 5,107,839  4,779,112  4,059,907  3,445,149  4,111,892  3,053,581 
Earnings per share (EPS)2 8.06 7.52 6.35 5.42 6.40 4.71
Share price1, 3 228.14 184.80 153.12 141.97 115.67 107.20
Valuation Ratio
P/E ratio4 28.32 24.58 24.10 26.18 18.07 22.75
Benchmarks
P/E Ratio, Competitors5
Automatic Data Processing Inc. 23.49 31.75 36.29 28.56 27.41 25.75
Waste Management Inc. 31.59 21.76 18.70 26.48 32.73
P/E Ratio, Sector
Support Services 27.80 26.10 24.71 21.59 25.01
P/E Ratio, Industry
Industrials 30.07 29.20 26.38 23.15 25.09

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income attributable to Accenture plc ÷ No. shares of common stock outstanding
= 5,107,839,000 ÷ 634,093,454 = 8.06

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 228.14 ÷ 8.06 = 28.32

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’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
No. shares of common stock outstanding1 634,093,454 635,672,438 638,990,838 635,224,220 642,184,419 648,101,194
Selected Financial Data (US$)
Operating income (in thousands) 6,513,644  6,305,074  5,841,041  4,632,609  4,810,445  4,435,869 
Operating profit per share2 10.27 9.92 9.14 7.29 7.49 6.84
Share price1, 3 228.14 184.80 153.12 141.97 115.67 107.20
Valuation Ratio
P/OP ratio4 22.21 18.63 16.75 19.47 15.44 15.66
Benchmarks
P/OP Ratio, Competitors5
Automatic Data Processing Inc. 18.44 24.07 23.42 21.27 18.67 18.57
Waste Management Inc. 19.50 15.02 13.82 13.63 12.05
P/OP Ratio, Sector
Support Services 20.19 17.82 18.35 15.76 15.48
P/OP Ratio, Industry
Industrials 16.46 13.75 15.19 15.44 12.65

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,513,644,000 ÷ 634,093,454 = 10.27

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 228.14 ÷ 10.27 = 22.21

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’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
No. shares of common stock outstanding1 634,093,454 635,672,438 638,990,838 635,224,220 642,184,419 648,101,194
Selected Financial Data (US$)
Revenues (in thousands) 44,327,039  43,215,013  41,603,428  36,765,478  34,797,661  32,914,424 
Sales per share2 69.91 67.98 65.11 57.88 54.19 50.79
Share price1, 3 228.14 184.80 153.12 141.97 115.67 107.20
Valuation Ratio
P/S ratio4 3.26 2.72 2.35 2.45 2.13 2.11
Benchmarks
P/S Ratio, Competitors5
Automatic Data Processing Inc. 3.97 5.13 4.41 4.00 3.51 3.42
Waste Management Inc. 3.41 2.81 2.52 2.30 1.90
P/S Ratio, Sector
Support Services 3.34 2.84 2.77 2.44 2.32
P/S Ratio, Industry
Industrials 2.19 1.95 2.12 1.99 1.73

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 44,327,039,000 ÷ 634,093,454 = 69.91

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 228.14 ÷ 69.91 = 3.26

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’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
No. shares of common stock outstanding1 634,093,454 635,672,438 638,990,838 635,224,220 642,184,419 648,101,194
Selected Financial Data (US$)
Total Accenture plc shareholders’ equity (in thousands) 17,000,536  14,409,008  10,364,753  8,949,477  7,555,262  6,133,725 
Book value per share (BVPS)2 26.81 22.67 16.22 14.09 11.76 9.46
Share price1, 3 228.14 184.80 153.12 141.97 115.67 107.20
Valuation Ratio
P/BV ratio4 8.51 8.15 9.44 10.08 9.83 11.33
Benchmarks
P/BV Ratio, Competitors5
Automatic Data Processing Inc. 10.07 13.48 17.00 12.45 9.13 7.78
Waste Management Inc. 7.46 6.68 6.05 5.91 4.61
P/BV Ratio, Sector
Support Services 9.04 9.88 9.30 8.45 8.08
P/BV Ratio, Industry
Industrials 7.56 6.93 6.28 5.73 4.31

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Total Accenture plc shareholders’ equity ÷ No. shares of common stock outstanding
= 17,000,536,000 ÷ 634,093,454 = 26.81

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 228.14 ÷ 26.81 = 8.51

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’s required rate of return and its actual rate of return. Accenture PLC’s P/BV ratio decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.