Calculating The Intrinsic Value Of Accenture plc (NYSE:ACN)
Jul 21
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U.S. IT Industry Analysis
UpdatedJul 22, 2025
DataAggregated Company Financials
Companies107
- 7D2.5%
- 3M27.4%
- 1Y29.6%
- YTD13.6%
The IT industry is up 2.5% in the last week, with Shopify up 10%. During this same period, the CoreWeave underperformed, falling 5.6%. This takes the industry's 12 month performance to a gain of 30%. As for the next few years, earnings are expected to grow by 19% per annum.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 22 Jul 2025 | US$1.0t | US$241.7b | US$17.3b | 27.9x | 57.9x | 4.2x |
| Thu, 19 Jun 2025 | US$1.0t | US$240.4b | US$17.1b | 27.2x | 58.6x | 4.2x |
| Sat, 17 May 2025 | US$937.0b | US$239.9b | US$16.9b | 29.7x | 55.4x | 3.9x |
| Mon, 14 Apr 2025 | US$808.0b | US$242.3b | US$18.5b | 32.5x | 43.8x | 3.3x |
| Wed, 12 Mar 2025 | US$885.2b | US$239.9b | US$18.3b | 41x | 48.3x | 3.7x |
| Fri, 07 Feb 2025 | US$998.5b | US$234.1b | US$16.3b | 45.4x | 61.4x | 4.3x |
| Sun, 05 Jan 2025 | US$871.5b | US$234.0b | US$16.5b | 49.1x | 53x | 3.7x |
| Tue, 03 Dec 2024 | US$894.5b | US$233.1b | US$16.3b | 46.8x | 55x | 3.8x |
| Thu, 31 Oct 2024 | US$794.7b | US$232.9b | US$15.7b | 43.2x | 50.5x | 3.4x |
| Sat, 28 Sep 2024 | US$805.3b | US$233.8b | US$17.8b | 40.3x | 45.2x | 3.4x |
| Mon, 26 Aug 2024 | US$752.0b | US$233.1b | US$17.4b | 34.1x | 43.1x | 3.2x |
| Wed, 24 Jul 2024 | US$743.7b | US$236.9b | US$17.2b | 29.8x | 43.3x | 3.1x |
| Fri, 21 Jun 2024 | US$681.9b | US$237.2b | US$17.3b | 27.4x | 39.5x | 2.9x |
| Sun, 19 May 2024 | US$716.7b | US$236.8b | US$17.3b | 25.3x | 41.5x | 3x |
| Tue, 16 Apr 2024 | US$735.7b | US$227.8b | US$13.7b | 24.4x | 53.5x | 3.2x |
| Thu, 14 Mar 2024 | US$815.3b | US$227.8b | US$14.4b | 23.1x | 56.7x | 3.6x |
| Sat, 10 Feb 2024 | US$856.9b | US$226.8b | US$13.1b | 22.7x | 65.4x | 3.8x |
| Mon, 08 Jan 2024 | US$758.6b | US$229.5b | US$12.8b | 20x | 59.1x | 3.3x |
| Wed, 06 Dec 2023 | US$759.7b | US$228.9b | US$12.7b | 21.3x | 59.6x | 3.3x |
| Fri, 03 Nov 2023 | US$636.8b | US$228.1b | US$12.1b | 20.6x | 52.6x | 2.8x |
| Sun, 01 Oct 2023 | US$662.3b | US$227.2b | US$6.5b | 24.3x | 102.4x | 2.9x |
| Tue, 29 Aug 2023 | US$674.4b | US$226.3b | US$6.6b | 21.2x | 101.9x | 3x |
| Thu, 27 Jul 2023 | US$694.7b | US$228.6b | US$6.2b | 25.5x | 112x | 3x |
| Sat, 24 Jun 2023 | US$661.8b | US$228.6b | US$6.1b | 23.4x | 107.8x | 2.9x |
| Mon, 22 May 2023 | US$639.0b | US$229.1b | US$5.1b | 21.8x | 124.9x | 2.8x |
| Wed, 19 Apr 2023 | US$595.9b | US$225.6b | US$2.5b | 23.8x | 243x | 2.6x |
| Fri, 17 Mar 2023 | US$1.9t | US$463.9b | US$22.5b | 24.5x | 83.9x | 4.1x |
| Sun, 12 Feb 2023 | US$2.0t | US$459.8b | US$40.7b | 26.8x | 50x | 4.4x |
| Tue, 10 Jan 2023 | US$2.0t | US$458.0b | US$39.2b | 28.7x | 50x | 4.3x |
| Thu, 08 Dec 2022 | US$1.9t | US$457.0b | US$39.0b | 28x | 49.1x | 4.2x |
| Sat, 05 Nov 2022 | US$1.8t | US$454.5b | US$37.8b | 25.4x | 46.8x | 3.9x |
| Mon, 03 Oct 2022 | US$1.8t | US$449.4b | US$41.7b | 25.2x | 42.3x | 3.9x |
| Wed, 31 Aug 2022 | US$2.0t | US$446.6b | US$41.6b | 29x | 48x | 4.5x |
| Fri, 29 Jul 2022 | US$2.0t | US$443.4b | US$47.9b | 29.2x | 41.8x | 4.5x |
Price to Earnings Ratio
41.8x
Current Industry PE
- Investors are pessimistic on the American IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 57.9x which is lower than its 3-year average PE of 68.3x.
- The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.2x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 29% per year over the last three years,
- Revenues have also declined 18% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | 0.78% | |
| Tech | 2.64% | |
| IT | 2.49% | |
| Internet Services and Infrastructure | 5.50% | |
| Data Processing Services | 0.53% | |
| IT Consulting | 0.15% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 32.0x.
- Analysts are expecting annual earnings growth of 10.7%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% over the next 5 years.
- This is better than its past earnings decline of 26% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SHOP Shopify | US$128.43 | 10.0% +US$15.2b | 104.9% | PE103.5x | |
| NET Cloudflare | US$197.76 | 8.1% +US$5.2b | 151.4% | PS38.7x | |
| TWLO Twilio | US$131.10 | 10.7% +US$1.9b | 126.0% | PS4.4x | |
| MDB MongoDB | US$222.24 | 10.3% +US$1.7b | -12.0% | PS8.6x | |
| ACN Accenture | US$282.45 | 0.9% +US$1.5b | -14.8% | PE22.2x |
