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Accenture PLC (NYSE:ACN)
Median P/S Value
$72.99 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Accenture PLC's revenue per share for the trailing twelve months (TTM) ended in Nov. 2014 was $47.09. Accenture PLC's 10-Year median P/S ratio is 1.55. Therefore, the Median P/S Value for today is $72.99.

As of today, Accenture PLC's share price is $90.51. Accenture PLC's median P/S value is $72.99. Therefore, Accenture PLC's Price to Median P/S Value Ratio for today is 1.24.

ACN' s 10-Year Price to Median P/S Value Range
Min: 0.6   Max: 1.38
Current: 1.24

0.6
1.38

During the past 13 years, the highest Price to Median P/S Value Ratio of Accenture PLC was 1.38. The lowest was 0.60. And the median was 0.97.

ACN's Price to Median P/S Value is ranked higher than
68% of the 2274 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.19 vs. ACN: 1.24 )

Definition

Accenture PLC's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=47.09*1.55
=72.99

10-Year Median P/S Ratio is 1.55.
Accenture PLC's revenue per share for the trailing twelve months (TTM) ended in Nov. 2014 was 10.92 (Feb. 2014 ) + 11.92 (May. 2014 ) + 12.02 (Aug. 2014 ) + 12.23 (Nov. 2014 ) = $47.09.

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


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Accenture PLC's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=90.51/72.99
=1.24

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


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


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
medpsvalue 27.5931.6038.5847.6945.6646.6757.0663.4766.0171.35

Accenture PLC Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
medpsvalue 63.4763.9564.7665.2266.0166.7467.4469.2271.3572.99
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