Enterprise Value to FCFF (EV/FCFF)
Paying user area
Try for free
Accenture PLC pages available for free this week:
- Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Accenture PLC for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Free Cash Flow to The Firm (FCFF)
Accenture PLC, FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
- Operating Activities Cash Flow
- The net cash provided by operating activities demonstrates a consistent upward trend from August 31, 2019, to August 31, 2022, increasing from approximately 6.63 billion USD to 9.54 billion USD. However, a slight decline is observed thereafter, with values decreasing to about 9.52 billion USD in 2023 and further to approximately 9.13 billion USD in 2024. This indicates strong operational cash generation capacity with some recent moderation.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm follows a similar pattern, showing a steady increase from 6.05 billion USD in 2019 to a peak of 9.03 billion USD in 2023. Despite this positive momentum, the figure falls to approximately 8.64 billion USD in 2024, indicating a minor decrease in free cash available after capital expenditures. This suggests good cash flow management overall, though recent slight declines may warrant monitoring.
- Overall Trends and Insights
- Both key cash flow metrics illustrate robust growth throughout the majority of the analyzed periods, reflecting strong operational performance and effective capital expenditure management. The slight downturn observed in the last year could imply emerging challenges or investment changes that impact cash generation. Continuous observation will be necessary to determine if these declines represent a temporary fluctuation or a more significant shift in cash flow dynamics.
Interest Paid, Net of Tax
Accenture PLC, interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
2 2024 Calculation
Interest paid, tax = Interest paid × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate displayed a generally stable trend over the six-year period from 2019 to 2024. The rate started at 22.5% in 2019 and showed slight fluctuations year over year, reaching a peak of 24% in 2022 before decreasing slightly to 23.5% in 2024. Overall, the tax rate oscillated within a narrow range of approximately 22.5% to 24%, indicating relatively consistent tax expense management during these years.
- Interest Paid, Net of Tax
- Interest expenses, net of tax, exhibited a noticeable upward trend from 2019 to 2023, followed by a decline in 2024. Specifically, the interest paid increased steadily from $17,534 thousand in 2019 to a peak of $35,623 thousand in 2023, more than doubling over the five-year span. However, in 2024, the interest paid decreased to $28,444 thousand, representing a reduction of approximately 20% from the previous year. This pattern suggests an initial escalation in interest obligations that may reflect increased borrowing or rising interest rates, followed by a reduction which could indicate either repayment, refinancing, or lower debt levels in the most recent year.
Enterprise Value to FCFF Ratio, Current
Accenture PLC, current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| EV/FCFF, Sector | |
| Software & Services | |
| EV/FCFF, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2024-08-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Accenture PLC, historical EV/FCFF calculation, comparison to benchmarks
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Free cash flow to the firm (FCFF)2 | |||||||
| Valuation Ratio | |||||||
| EV/FCFF3 | |||||||
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Oracle Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Software & Services | |||||||
| EV/FCFF, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a general upward trend over the six-year period. Starting at approximately 111.78 billion US dollars in 2019, it reached a peak in 2021 at around 208.54 billion before declining in 2022 to about 150.49 billion. After this dip, EV increased again in 2023 and 2024, reaching its highest value at 222.62 billion US dollars. This fluctuation suggests periods of valuation increase interrupted by a temporary contraction in 2022.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm shows a consistent upward movement from 6.05 billion US dollars in 2019 to 9.03 billion in 2023. However, there is a slight decrease in 2024 to approximately 8.64 billion. This trend implies improving cash generation capacity until 2023, followed by a minor reduction in the most recent year.
- EV to FCFF Ratio (EV/FCFF)
- The EV/FCFF ratio exhibits variability, moving from 18.49 in 2019 to a lower 17.9 in 2020, indicating a more favorable valuation relative to cash flow. There is a significant increase in 2021 to 24.76, suggesting that the enterprise value grew faster than free cash flow. In 2022, this ratio declined sharply to 16.99, marking the most attractive valuation point in the period analyzed. It then rose again to 20.26 in 2023 and further to 25.76 in 2024. The fluctuations highlight changing market perceptions or operational factors affecting valuation relative to cash flow generation.