Accenture PLC (NYSE:ACN)

The financial ratios of the company over multiple quarters demonstrate notable trends in valuation metrics, reflecting varying market perceptions and underlying financial performance.

Price to Earnings (P/E) Ratio

The P/E ratio shows an initial increase from approximately 32 to a peak near 41, followed by a general declining trend. After this peak, the ratio decreases significantly to values in the low 20s by the latest periods, suggesting a market revaluation. Some intermittent increases occur, but the overall tendency points towards a reduction in market price relative to earnings over the longer term.

Price to Operating Profit (P/OP) Ratio

This ratio exhibits a comparable pattern to the P/E ratio, rising early from about 25 to over 31, then declining steadily. The decline is sharper after the peak period, reaching levels around 14 to 16 in the most recent quarters. This suggests that the market has placed lower premiums on operating profit over time, possibly reflecting expectations of profit margin changes or operational risks.

Price to Sales (P/S) Ratio

The P/S ratio starts in the vicinity of 3.7 to 4.7, peaking around late 2021, before descending gradually towards the 2.1 to 2.3 range in the final quarters analyzed. Despite some fluctuations, the ratio indicates a diminishing valuation relative to sales, potentially signaling concerns about revenue growth sustainability or changing sales profitability.

Price to Book Value (P/BV) Ratio

The P/BV ratio follows a similar cyclical pattern, increasing from around 9.4 to a high of approximately 12.5 in late 2021. Subsequently, it declines consistently to below 5.5 by the end of the observed period. This substantial decrease could reflect market skepticism regarding the company's asset valuation or expected returns on equity.

Overall, the financial valuation metrics reflect a peak in investor optimism around late 2021, followed by a marked retraction in valuation multiples across earnings, operating profit, sales, and book value bases. The downward trends in these ratios suggest evolving market expectations possibly influenced by macroeconomic factors, industry dynamics, or company-specific developments impacting growth optimism and risk assessment.

Share Price

The share price exhibited notable volatility throughout the observed periods. It initially increased significantly from approximately $264.47 to a peak of around $400.60 between late 2020 and late 2021. Following this peak, a downward trend occurred, with the price declining to about $250 by mid to late 2022. Subsequently, the share price demonstrated a recovery phase, rising again to above $370 by late 2024, before declining towards the end of the period to about $270. Overall, the share price showed cyclical behavior with substantial swings rather than a consistent directional trend.

Earnings per Share (EPS)

EPS displayed a generally upward trajectory over the entire timeframe. Beginning at $8.27, EPS steadily increased to reach a high of approximately $12.76 by mid-2025. Minor fluctuations appeared in certain quarters; for example, slight decreases occurred around early 2023 and mid-2024, but the overall trend remained positive, indicating continued growth in profitability on a per-share basis.

Price-to-Earnings (P/E) Ratio

The P/E ratio showed marked fluctuations throughout the periods analyzed. Initially, the ratio hovered around low 30s, rising to nearly 41 around late 2021, coinciding with the peak share price. Following this peak, the P/E ratio experienced a significant decline to the low 20s by late 2022 and fluctuated between 20 and 31 in subsequent periods. Towards the end of the dataset, the P/E ratio trended downward again, reaching a low near 19 before a modest rebound. These movements suggest varying investor sentiment and possible changes in market valuation relative to earnings over time.

Summary

The data indicates a growing earnings performance accompanied by a highly variable share price and valuation multiples. While EPS growth was steady, share price movement was more cyclical, reflecting external market factors or investor sentiment that caused valuation expansion and contraction phases. The P/E ratio's volatility aligns with this, highlighting periods of optimism and correction. The overall picture is of a company with increasingly strong earnings fundamentals, yet subject to market-driven fluctuations in share price and valuation.

The analysis of the financial metrics over the given periods reveals distinct trends in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price

The share price experienced an initial upward trend, rising from 264.47 US$ at the end of 2020 to a peak of 400.6 US$ by November 2021. Following this peak, it exhibited a downward correction, declining to 250.07 US$ by August 2022. Subsequently, the share price showed moderate recovery and fluctuations, reaching approximately 372.16 US$ in November 2024 before decreasing again to around 269.96 US$ by November 2025. Thus, the share price demonstrated volatility with periods of growth followed by corrections.

Operating Profit Per Share

Operating profit per share showed a consistent upward trajectory across the observation period. Starting from 10.46 US$ in November 2020, it steadily increased to reach about 16.49 US$ by November 2025. This upward trend indicates ongoing improvements in operational profitability on a per-share basis, reflecting enhanced earnings generation capacity regardless of share price volatility.

Price-to-Operating Profit (P/OP) Ratio

The P/OP ratio fluctuated notably, mirroring the movements in share price relative to operating profit per share. Initially, the ratio rose from around 25.29 at the end of 2020 to a high of approximately 31.03 in November 2021, coinciding with the share price peak. Thereafter, the ratio declined significantly, reaching a low near 14.62 by August 2025, before slightly increasing toward the last recorded date. This decline suggests that despite rising operating profits, market valuation relative to operating earnings decreased, possibly indicating a more conservative market outlook or valuation adjustment over time.

Overall, the data portray a scenario where operating profitability has steadily improved, while share price and valuation multiples have been subject to greater volatility. The divergence between increasing operating profits and fluctuating market valuation ratios may warrant further examination of external market factors or company-specific circumstances influencing investor sentiment.

Share Price

Over the reviewed periods, the share price exhibited notable volatility. Beginning at approximately $264, the price rose significantly to a peak near $401 within one year. This was followed by a downward correction, with share prices declining below $250 in late 2022. Subsequently, the price fluctuated, showing intermittent recoveries and declines, peaking again near $372 before trending downward towards the $270 range by the final periods. The overall trend suggests periods of both strong investor optimism and caution, with variability likely influenced by market dynamics or company-specific factors.

Sales Per Share

Sales per share showed a consistent upward trajectory throughout the entire timeframe. Starting from around $70, sales per share increased steadily each quarter, reaching approximately $115 by the last recorded period. This steady increase indicates continuous revenue growth on a per-share basis, reflecting expanding sales performance or operational scale, which suggests sustained business growth with minimal seasonal or cyclical volatility.

Price-to-Sales (P/S) Ratio

The price-to-sales ratio demonstrated notable fluctuations, initially increasing from about 3.75 to a higher level of 4.72, reflecting growing market valuations relative to sales early in the period. Following this peak, the ratio declined sharply to a trough close to 2.15 in mid-2025, indicating that the market price became less expensive relative to sales. This pattern highlights changing market sentiment where valuations compressed despite steadily increasing sales per share, suggesting either increased caution among investors or changing expectations about future profitability or growth.

Overall Insights

The data suggest a company experiencing steady sales growth, yet facing fluctuating market valuation levels. The share price and P/S ratio dynamics imply phases of optimism followed by cautious repricing of shares. Despite increasing sales, the reduced P/S ratio toward the latter periods indicates that the market may be pricing in increased risks or uncertainties. This divergence between rising sales per share and declining valuation multiples could warrant further investigation into underlying factors such as profit margins, market conditions, or competitive pressures.

Share Price Trend

The share price demonstrated a general upward trend from late 2020 through late 2021, increasing from approximately $264.47 to a peak around $400.60. Subsequently, the price experienced a notable decline in early 2022, dropping below $320, followed by further decreases reaching lows near $240.94 by late 2025. Intermittent recoveries occurred, notably in mid-2024 when the price rose above $360, but this was not sustained. Overall, the share price exhibited considerable volatility with significant peaks and troughs during the analyzed period.

Book Value Per Share (BVPS) Evolution

The book value per share displayed a consistent, gradual increase throughout the analyzed periods, rising steadily from $28.21 at the end of 2020 to above $50 by late 2025. This upward movement suggests an ongoing accumulation of net assets or retained earnings on a per-share basis, indicating sustained underlying growth in the company's equity base over time without abrupt fluctuations.

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

The price-to-book value ratio reached its maximum in late 2021 at approximately 12.45, illustrating a period of elevated market valuation relative to the company's book value. Following this peak, the ratio declined sharply to around 7.13 by mid-2022 before stabilizing in a range between roughly 5 and 8 for the subsequent years. The declining P/BV ratio reflects the combined effect of a dropping share price alongside a steadily increasing book value, suggesting market revaluation and possibly increased investor caution or adjustment to fundamentals.

Integrated Insights

The interplay between the increasing book value per share and fluctuating share price resulted in meaningful changes in valuation multiples. Despite the strengthening equity base demonstrated by the consistent growth in BVPS, market sentiment as indicated by share price and P/BV ratio experienced several cycles of optimism and correction. This pattern may imply that external factors or market perceptions had material influence on share valuation beyond fundamental book value changes.