Accenture Plc Price To Earning vs. Current Valuation

ACN Stock  USD 358.68  1.50  0.42%   
Based on the measurements of profitability obtained from Accenture Plc's financial statements, Accenture plc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Accenture Plc's ability to earn profits and add value for shareholders. At this time, Accenture Plc's Price To Sales Ratio is very stable compared to the past year. As of the 14th of December 2024, EV To Sales is likely to grow to 3.46, while Days Sales Outstanding is likely to drop 50.86. At this time, Accenture Plc's Net Interest Income is very stable compared to the past year. As of the 14th of December 2024, Change To Netincome is likely to grow to about 2.9 B, though Accumulated Other Comprehensive Income is likely to grow to (1.5 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.340.3261
Sufficiently Up
Very volatile
Net Profit Margin0.06690.1119
Way Down
Pretty Stable
Operating Profit Margin0.10.1479
Way Down
Slightly volatile
Pretax Profit Margin0.10.1495
Way Down
Slightly volatile
Return On Assets0.110.1299
Fairly Down
Slightly volatile
Return On Equity0.240.2568
Significantly Down
Slightly volatile
For Accenture Plc profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Accenture Plc to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Accenture plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Accenture Plc's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Accenture plc over time as well as its relative position and ranking within its peers.
  

Accenture Plc's Revenue Breakdown by Earning Segment

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Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Accenture Plc. If investors know Accenture will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Accenture Plc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.236
Dividend Share
5.35
Earnings Share
11.45
Revenue Per Share
103.363
Quarterly Revenue Growth
0.026
The market value of Accenture plc is measured differently than its book value, which is the value of Accenture that is recorded on the company's balance sheet. Investors also form their own opinion of Accenture Plc's value that differs from its market value or its book value, called intrinsic value, which is Accenture Plc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Accenture Plc's market value can be influenced by many factors that don't directly affect Accenture Plc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Accenture Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine if Accenture Plc is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Accenture Plc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Accenture plc Current Valuation vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Accenture Plc's current stock value. Our valuation model uses many indicators to compare Accenture Plc value to that of its competitors to determine the firm's financial worth.
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Accenture plc is rated below average in price to earning category among its peers. It is the top company in current valuation category among its peers reporting about  8,102,259,856  of Current Valuation per Price To Earning. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Accenture Plc's earnings, one of the primary drivers of an investment's value.

Accenture Plc's Earnings Breakdown by Geography

Accenture Current Valuation vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Accenture Plc

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
27.95 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Accenture Plc

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
226.46 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Accenture Current Valuation vs Competition

Accenture plc is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is presently estimated at about 682.59 Billion. Accenture Plc totals roughly 226.46 Billion in current valuation claiming about 33% of equities under Information Technology industry.
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Accenture Plc Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Accenture Plc, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Accenture Plc will eventually generate negative long term returns. The profitability progress is the general direction of Accenture Plc's change in net profit over the period of time. It can combine multiple indicators of Accenture Plc, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.6 B-1.5 B
Operating Income9.6 B10.1 B
Income Before Tax9.7 B10.2 B
Net Income Applicable To Common Shares7.9 B8.3 B
Net Income7.4 B7.8 B
Income Tax Expense2.3 B1.2 B
Total Other Income Expense Net103.5 M108.6 M
Net Income From Continuing Ops7.4 B4.9 B
Non Operating Income Net Other-142.2 M-135.1 M
Interest Income272.3 M285.9 M
Net Interest Income213.3 M224 M
Change To Netincome2.8 B2.9 B
Net Income Per Share 11.57  12.15 
Income Quality 1.23  1.95 
Net Income Per E B T 0.75  0.52 

Accenture Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Accenture Plc. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Accenture Plc position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Accenture Plc's important profitability drivers and their relationship over time.

Use Accenture Plc in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Accenture Plc position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Accenture Plc will appreciate offsetting losses from the drop in the long position's value.

Accenture Plc Pair Trading

Accenture plc Pair Trading Analysis

The ability to find closely correlated positions to Accenture Plc could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Accenture Plc when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Accenture Plc - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Accenture plc to buy it.
The correlation of Accenture Plc is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Accenture Plc moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Accenture plc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Accenture Plc can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Accenture Plc position

In addition to having Accenture Plc in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Accenture plc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Accenture Plc's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Accenture Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Accenture Plc Stock:
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To learn how to invest in Accenture Stock, please use our How to Invest in Accenture Plc guide.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
To fully project Accenture Plc's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Accenture plc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Accenture Plc's income statement, its balance sheet, and the statement of cash flows.
Potential Accenture Plc investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Accenture Plc investors may work on each financial statement separately, they are all related. The changes in Accenture Plc's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Accenture Plc's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.