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GuruFocus has detected 4 Warning Signs with Accenture PLC $ACN.
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Accenture PLC (NYSE:ACN)
EV/EBIT
12.56 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Accenture PLC's enterprise value is $71,875 Mil. Accenture PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $5,722 Mil. Therefore, Accenture PLC's EV/EBIT ratio for today is 12.56.

ACN' s EV/EBIT Range Over the Past 10 Years
Min: 5.9   Max: 15.8
Current: 12.65

5.9
15.8

During the past 13 years, the highest EV/EBIT Ratio of Accenture PLC was 15.80. The lowest was 5.90. And the median was 11.40.

ACN's EV/EBIT is ranked higher than
66% of the 1184 Companies
in the Global Information Technology Services industry.

( Industry Median: 17.51 vs. ACN: 12.65 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Accenture PLC's enterprise value for the quarter that ended in Nov. 2016 was $73,258 Mil. Accenture PLC's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was $5,722 Mil. Accenture PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 was 7.81%.


Definition

Accenture PLC's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=71874.884/5721.584
=12.56

Accenture PLC's current Enterprise Value is $71,875 Mil.
Accenture PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 1627.135 (Feb. 2016 ) + 1297.415 (May. 2016 ) + 1462.865 (Aug. 2016 ) + 1334.169 (Nov. 2016 ) = $5,722 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Accenture PLC's Earnings Yield (Joel Greenblatt) for the quarter that ended in Nov. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Nov. 2016 )=EBIT (TTM)/Enterprise Value (Q: Nov. 2016 )
=5721.584/73257.9928
=7.81 %

Accenture PLC's Enterprise Value for the quarter that ended in Nov. 2016 was $73,258 Mil.
Accenture PLC's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Nov. 2016 was 1627.135 (Feb. 2016 ) + 1297.415 (May. 2016 ) + 1462.865 (Aug. 2016 ) + 1334.169 (Nov. 2016 ) = $5,722 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Accenture PLC Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
ev2ebit 10.808.717.257.129.019.069.8811.3312.9812.39

Accenture PLC Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
ev2ebit 11.3311.8812.3613.3212.9815.0112.2814.0812.3912.80
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