Accenture PLC (NYSE:ACN)

The analysis of the company's valuation multiples over multiple quarterly periods reveals several noteworthy trends and fluctuations across the price to earnings (P/E), price to operating profit (P/OP), price to sales (P/S), and price to book value (P/BV) ratios.

Price to Earnings (P/E) Ratio

The P/E ratio initially increased from approximately 32 at the end of 2020 to a peak near 41 by late 2021, indicating a rise in market valuation relative to earnings during this period. Following this peak, there was a marked decline throughout 2022, dropping below 20 by mid-2025. This downward trend suggests a market reassessment leading to more conservative valuations relative to the company's earnings, potentially reflecting changes in growth expectations or profitability concerns.

Price to Operating Profit (P/OP) Ratio

This ratio followed a similar pattern to the P/E ratio, rising from about 25 in late 2020 to over 31 by late 2021 before declining to approximately 15 by mid-2025. The decline after the peak is indicative of the market attributing lower multiples to operating profit, possibly due to operating challenges or margin pressures. The consistent downward movement after the peak aligns with the adjustments seen in the earnings valuation, reinforcing a generalized moderation in optimism about profitability.

Price to Sales (P/S) Ratio

The P/S ratio also experienced an upward trend until late 2021, moving from around 3.75 to nearly 4.72, indicating increasing valuation relative to top-line revenues. However, this ratio saw a more gradual decline compared to P/E and P/OP ratios, settling near 2.15 by mid-2025. The less steep decline suggests that although profitability multiples decreased significantly, sales-based valuation adjusted more moderately, possibly reflecting stable or improving revenue streams amidst earnings fluctuations.

Price to Book Value (P/BV) Ratio

The P/BV ratio rose from approximately 9.4 at the end of 2020 to a high around 12.5 in late 2021, reflecting increased market valuation against the company's net asset base. Subsequently, it exhibited a steady downward trajectory reaching under 5 by mid-2025. This substantial decline implies diminished investor confidence in the company’s net asset value or expectations of reduced asset profitability or growth potential over the later periods.

Overall, the valuation multiples peaked around late 2021, followed by a systematic and pronounced decline across all four ratios. The reduction in P/E and P/OP ratios was the most significant, indicating greater sensitivity of earnings and profitability perceptions to market conditions. The decline in P/S and P/BV ratios, while notable, was somewhat less volatile, suggesting relative stability or slower adjustments in revenue and asset value expectations. These trends may reflect a combination of market corrections, evolving growth prospects, or broader sectoral and economic influences impacting investor sentiment.

The financial data reveals a notable fluctuation in the company's share price over the analyzed quarters. Initially, the share price exhibited a strong upward trend from late 2020 through November 2021, reaching a peak around 400.6 USD. However, following this peak, the share price experienced a general decline, with some intermittent recoveries, falling to approximately 240.94 USD by August 2025. This indicates a period of volatility and potential market reassessment of the stock's valuation after late 2021.

Regarding earnings per share (EPS), the data shows a consistent, gradual increase over the entire period under review. Beginning at 8.27 USD in November 2020, EPS steadily rises to peak at around 12.76 USD by May 2025 before a slight dip in the last recorded quarter. This consistent growth in earnings suggests ongoing improvements in the company’s profitability or operational efficiency.

The price-to-earnings (P/E) ratio exhibits more variability, reflecting changes in both the market valuation and the earnings performance. After starting near 32 in late 2020, the ratio increased and peaked close to 40.88 by November 2021, aligning with the share price peak. Subsequently, the P/E ratio declined to below 20 by August 2025, indicating that the share price fell more sharply relative to earnings growth or that the market adjusted its expectations for future earnings growth.

Share Price Trend

Marked by an initial significant rise to a peak in late 2021 followed by a prolonged decline and volatility through mid-2025.

Earnings Per Share Trend

Consistently increasing over the period, demonstrating steady earnings growth with minor fluctuations near the end.

Price-to-Earnings Ratio Trend

Fluctuated considerably, peaking in late 2021, then declining steadily, which reflects market valuation adjustments relative to earnings.

Overall, the data suggests that while underlying earnings have improved steadily, market sentiment as expressed through share price and valuation multiples has been more volatile. This divergence points to potential external influences affecting investor confidence or broader market conditions impacting the stock's price independently of its earnings growth.

Share Price Trend

The share price showed an initial upward trajectory, increasing significantly from approximately $264 in late 2020 to a peak above $400 by late 2021. Following this peak, the price experienced a notable decline through 2022, dropping back to the range of $250-$270. After a period of relative stability and slight recovery in early to mid-2023, the share price again displayed volatility, with a peak around $370 in late 2024 before declining sharply to below $241 by the third quarter of 2025. Overall, the pattern reflects significant price fluctuations with a pronounced peak followed by a cyclical decline.

Operating Profit Per Share (OPPS)

The operating profit per share exhibited a generally steady and positive trend across the entire period. Starting from about $10.46 per share in late 2020, it consistently increased each quarter, reaching approximately $16.9 by mid-2025, with only minor short-term fluctuations. This indicates ongoing operational efficiency improvements and profitability growth over the term analyzed.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio showed a notable fluctuation corresponding inversely to the share price movements. Initially around 25, the ratio rose to over 31 by late 2021 reflecting the rapid share price increase relative to profit growth. Afterward, it declined sharply to a low near 16 in late 2022 coinciding with the share price drop and steady profit gains. During 2023 and into 2024, the ratio moved upward again reaching mid-20s, suggesting an increase in share valuation compared to operating profit. Toward mid-2025, the ratio decreased back below 15, driven primarily by share price declines outpacing operating profit increases. This volatility in P/OP highlights changing market sentiment, valuation adjustments, or risk perceptions impacting investor pricing relative to operational earnings.

Overall Insights

The data reveals a company with steadily improving operational profitability despite significant volatility in market valuation as reflected by share price and P/OP ratio fluctuations. The disconnect between steady profit growth and cyclical share price variations suggests external factors or market sentiment strongly influence valuation beyond earnings performance. Investors might consider the relatively stable improvement in operating profits as a positive indicator of business fundamentals amid changing market conditions.

Share Price Trend

The share price exhibited significant volatility over the observed periods. It reached a notable peak around November 2021 at approximately $400.60 before undergoing a sharp decline to about $250.07 by August 2022. Following this low point, the share price gradually recovered, climbing again to highs around $372.16 in November 2024. However, towards the most recent quarters, the price demonstrated another notable decline, ending near $240.94 in August 2025, which represents a considerable decrease compared to earlier peak values.

Sales Per Share Evolution

Sales per share showed a consistent upward trend throughout the entire timeline. Starting from $70.47 in November 2020, the sales per share increased steadily each quarter without any declines, reaching $112.30 by August 2025. This steady progression indicates continuous growth in revenue generated per share over the period examined.

Price-to-Sales (P/S) Ratio Movement

The P/S ratio experienced fluctuations that reflected the variation in share price relative to sales growth. Initially, the ratio increased from 3.75 to a peak of 4.72 by November 2021, indicating a period when share price appreciation outpaced revenue growth. Subsequently, the ratio declined sharply to a low of 2.56 in August 2022, influenced by the steep drop in share price against the continuing rise in sales per share. After this decline, the P/S ratio fluctuated moderately around the 3.0 mark, with occasional dips and rises, ending near 2.15 in August 2025. The downward trend in the P/S ratio in the latter periods suggests the share price underperformed relative to sales growth.

Overall Insights

Overall, the data indicate a company experiencing steady revenue growth, as evidenced by the continuous increase in sales per share. However, the share price did not consistently reflect this growth, showing periods of both sharp appreciation and notable declines. The P/S ratio variability confirms discrepancies between market valuation and sales performance, with valuation extremes occurring around late 2021 and mid-2022. The decreasing P/S ratio towards the end of the timeline could signal market caution or other factors influencing investor sentiment despite ongoing revenue increases.

Share Price

The share price exhibited notable volatility over the observed periods. Initially, there was a steady increase from approximately 264.47 to a peak around 400.6 by late 2021. Following this peak, the price experienced a significant decline, dropping to the low 250s by mid-2022. Subsequently, the price partially recovered, reaching levels above 370 by late 2024. However, towards the end of the timeline, there was a renewed downward trend, with the share price falling to about 240.94.

Book Value Per Share (BVPS)

Book value per share demonstrated a consistent upward trend throughout the entire period. Starting at 28.21, it showed regular increments each quarter, culminating at 50.28 by the final recorded date. This steady increase indicates ongoing growth in shareholders’ equity on a per-share basis, reflecting the company’s ability to build book value over time despite fluctuations in market price.

Price-to-Book Value Ratio (P/BV)

The price-to-book value ratio started at a relatively high level of approximately 9.38 and peaked at 12.45 in late 2021, aligning with the peak in share price. Afterward, it declined significantly, reaching lows near 4.79 by the end of the period. This decline suggests that the market valuation has become more conservative relative to the company’s book value, which increased steadily during the same period. The reducing P/BV ratio indicates either a recalibration of market expectations or increased book value growth not fully matched by the market price.

Summary of Trends

The data reveals that while the company’s book value per share steadily improved each quarter, reflecting a robust accumulation of equity, the share price was more volatile, influenced by market factors that led to sharp rises and falls. The initial rapid increase in share price and P/BV ratio until late 2021 implies strong market optimism or favorable conditions. The subsequent price correction and steady decline in the P/BV ratio suggest a market reassessment of value, possibly due to external economic factors or changes in investor sentiment. Ultimately, the divergence between consistent book value growth and fluctuating market price highlights a potentially attractive valuation opportunity from a fundamental perspective, though market risks remain evident.