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Accenture PLC (NYSE:ACN)
Enterprise Value
$55,401 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Accenture PLC's enterprise value is $55,401 Mil. Accenture PLC's operating income for the trailing twelve months (TTM) ended in Nov. 2014 was $4,397 Mil. Therefore, Accenture PLC's EV/EBIT ratio for today is 12.60.

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Accenture PLC's enterprise value is $55,401 Mil. Accenture PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $5,065 Mil. Therefore, Accenture PLC's EV/EBITDA ratio for today is 10.94.

EV/Revenue ratio is calculated as enterprise value divided by its Revenue. As of today, Accenture PLC's enterprise value is $55,401 Mil. Accenture PLC's revenue for the trailing twelve months (TTM) ended in Nov. 2014 was $32,418 Mil. Therefore, Accenture PLC's EV/Revenue ratio for today is 1.71.


Definition

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash and cash equivalents.

Accenture PLC's Enterprise Value for the fiscal year that ended in Aug. 2014 is calculated as

Enterprise Value (A: Aug. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=53220.7536+0+26.403
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0.33+553.302-4923.907
=48,877

Accenture PLC's Enterprise Value for the quarter that ended in Nov. 2014 is calculated as

Enterprise Value (Q: Nov. 2014 )
=Market Cap+Preferred Stock+Long-Term Debt
=56456.3668+0+26.786
+Short-Term Debt Without Lease+Minority Interest-Cash and Cash Equivalents
+0.004+534.863-4474.806
=52,543

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV/EBIT ratio is calculated as enterprise value divided by its EBIT.

Accenture PLC's EV/EBIT for today is

EV/EBIT ratio=Enterprise Value (Today)/Operating Income (TTM)
=55400.598/4397.122
=12.60

Accenture PLC's current Enterprise Value is $55,401 Mil.
Accenture PLC's Operating Income for the trailing twelve months (TTM) ended in Nov. 2014 was 951.282 (Feb. 2014 ) + 1178.766 (May. 2014 ) + 1079.365 (Aug. 2014 ) + 1187.709 (Nov. 2014 ) = $4,397 Mil.

2. EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA.

Accenture PLC's EV/EBITDA for today is:

Accenture PLC's current Enterprise Value is $55,401 Mil.
Accenture PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 1103.616 (Feb. 2014 ) + 1342.425 (May. 2014 ) + 1257.462 (Aug. 2014 ) + 1361.348 (Nov. 2014 ) = $5,065 Mil.

3. EV/Revenue ratio is calculated as enterprise value divided by its Revenue.

Accenture PLC's EV/Revenue for today is:

EV/Revenue ratio=Enterprise Value (Today)/Revenue (TTM)
=55400.598/32418.239
=1.71

Accenture PLC's current Enterprise Value is $55,401 Mil.
Accenture PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 7567.483 (Feb. 2014 ) + 8240.18 (May. 2014 ) + 8267.319 (Aug. 2014 ) + 8343.257 (Nov. 2014 ) = $32,418 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Market Cap, Preferred Stock, Long-Term Debt, Cash and Cash Equivalents


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Accenture PLC Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
ev 19,09022,09128,56127,58419,56420,85431,79035,52443,00348,877

Accenture PLC Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev 35,52441,08445,54150,12243,00347,38152,06150,27948,87752,543
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