ACNNEUTRAL

ACN EV/EBITDA Analysis

12.3x

Higher than 20% of Technology sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

Accenture's EV/EBITDA of 12.3x means that the company's total enterprise value (market cap plus debt minus cash) is 12.3 times its earnings before interest, taxes, depreciation, and amortization — a measure of operational cash flow.

Sector Performance

20th percentile

ACN

12.3x

Sector Median

19.1x

Sector Avg

44.5x

📊

Deep Analysis

This is far below the sector median of 23.9x, placing Accenture in the 4th percentile among technology peers, indicating it trades at a low multiple relative to the industry. The metric has been completely stable over the past eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%. A low valuation combined with a flat trend can suggest limited upside revaluation potential, but it also implies consistent earnings and no deterioration in market expectations. This stability reduces the risk of a sharp multiple contraction while offering a margin of safety compared to higher-priced peers. The overall NEUTRAL verdict is supported: the low EV/EBITDA aligns with a cautious stance, as the lack of growth in the multiple does not signal a compelling catalyst for re-rating.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ACN?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does ACN's EV/EBITDA compare to its sector?

ACN's EV/EBITDA of 12.3x compares to a Technology sector median of 19.1x, placing it in the 20th percentile.

Who are ACN's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: AMAT (19.3x), MSFT (18.9x), CRM (18.5x), ADI (24.2x), APH (24.5x).

📚

Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.