Using the industry peer median P/E multiple (trailing + forward), Accenture plc (ACN) has a fair value of $452.58 based on 8 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Accenture plcACN | 123,489 | 16.1x | 14.1x |
| Applied Materials, Inc.AMAT | 270,054 | 39.3x | 36.3x |
| KLA CorporationKLAC | 192,316 | 48.2x | 40.0x |
| Texas Instruments IncorporatedTXN | 177,859 | 35.8x | 30.4x |
| Amphenol CorporationAPH | 151,894 | 37.0x | 37.4x |
| QUALCOMM IncorporatedQCOM | 140,314 | 26.2x | 11.0x |
| Palo Alto Networks, Inc.PANW | 106,884 | 98.0x | 42.4x |
| Adobe Inc.ADBE | 98,604 | 14.4x | 10.2x |
| Leidos Holdings, Inc.LDOS | 19,925 | 14.2x | 15.6x |
| Industry Median | 36.4x | 33.4x | |
| (*) Profit after tax | 7,678 | 8,778 | |
| Equity Value | 279,653 | 292,807 | |
| (/) Outstanding shares | 632 | 632 | |
| Fair Price | $442 | $463 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.