Why Has Accenture Stock More Than Doubled Since Late 2018?

BARCELONA, SPAIN – JUNE 29: Accenture logo during the second day of the Mobile World Congress (MWC) … [+] Barcelona, on June 29, 2021 in Barcelona, Spain. Barcelona’s Mobile World Congress, the world’s biggest mobile event, is opening its doors to the public for the first time after the trade show was cancelled last year due to the Covid-19 pandemic. (Photo by Joan Cros/Corbis via Getty Images)

Corbis via Getty Images

Accenture (NYSE: ACN) stock price jumped more than 2x from $141 in 2018 end to $326 currently, primarily due to favorable changes in its P/S multiple. Additionally, the company witnessed a steady rise in revenue over this period, and revenue per share has increased, despite a roughly unchanged outstanding share count.

In our interactive dashboard, Why Accenture Stock Moved: ACN Stock Has Gained 131% Since 2018, we break down the factors behind this move.

ACN’s Total Revenue has grown 38% from $41 billion in 2018 to $56.7 billion on an LTM basis

  • ACN’s total revenue has seen a steady rise over the past few years, with a gradual increase from $41 billion in FY ’18 to $50.5 billion in FY ’21, and currently stands even higher at $56.7 billion. (ACN’s fiscal year ends in August)
  • The company is a leading multinational professional services company, specializing in information technology services and consulting.
  • As of FY ’21, sales from North America make up 47% of the company’s sales, standing at $23.7 billion, up from $20 billion in FY ’19, a jump of almost 20% in just two years.
  • For details about ACN revenues and comparison to peers, see Accenture Revenue Comparison

Stock Price


Revenue per share increased 37% from $65.23 in 2018 to $89.47 currently

  • ACN revenue rose from $41 billion in 2018 to $56.7 billion currently, while the outstanding share count increased from 628.5 million in 2018 to 633.7 million currently.
  • Due to this, RPS has risen from $65.23 in FY ’18 to $89.47 currently.

Price-To-Sales (P/S) multiple for ACN rose strongly from 2.3x in 2018 to 5.4x by 2021 end, but has pulled back to 3.6x currently, still more than 1.5x higher than its 2018 level

  • Due to ACN’s strong performance between 2018-end to 2021, its P/S multiple rose steadily from 2.3x in 2018 to as high as 5.4x in 2021, on the back of rising investor expectations surrounding a continued rise in demand for the company’s services.
  • However, despite the recent jump in sales, current geopolitical tensions have led to increased uncertainty in the broader markets, and the P/S multiple has pulled back, currently standing at around 3.6x.
  • For additional details about the company stock returns and comparison to peers, see Accenture Stock Return Comparison.

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