ACCO Brands (ACCO:NYS) Fundamental Valuation Report

ACCO Brands (ACCO:NYS) Fundamental Valuation Report

Fundamental Valuation Report


Industrials:Business Equipment & Supplies

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$9.04 (USD) 05/27/2021

Weighted Valuation
$9.63 (USD)

Overall Rating
Undervalued by 6.6%

Valuation Models Comparables: $9.51 (USD)
(in order of importance) Adjusted Book Value: $10.01 (USD)
Multiples: $9.23 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation
According to Analyst consensus at $13.00 this stock is Undervalued

Company Overview (ACCO:NYS USD)

Price 9.04
Range 9.04 – 9.18
52 week 5.27 – 9.68
Open 9.12
Vol / Avg. 731650/582374
Mkt cap 863.25M
P/E 25.11
Div/yield 0.26/0.03
EPS 0.65
Shares 95.49M
Beta 2.22

Company Description

ACCO Brands Corp designs, manufactures, and markets consumer and business products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers school notebooks, janitorial supplies, and whiteboards; storage and organization products, such as three-ring and lever-arch binders, sheet protectors, and indexes, and punching products; computer accessories and others used in schools, homes, and businesses. It offers its products primarily under the AT-A-GLANCE, Five Star, GBC, Hilroy, Kensington, Quartet, Leitz, NOBO, Rapid, Rexel, Tilibra, and Wilson Jones brands. The company markets and sells its products through various channels, including mass retailers; e-tailers; discount, and variety chains; and warehouse clubs.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ACCO:NYS

Using a discounted cash flow model we generated an intrinsic value of $30.29 (USD) for ACCO:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ACCO:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $30.29 1% 5% 1% 5%
WACC (or Ke) 7.94 $40.01 $23.80
Terminal Growth Rate 2.90 $24.37 $39.15
Tax Rate 0.21 $32.85 $27.73
Cash Flow 290,986,090 $28.13 $32.45
Capital Expenditures -26,340,000 $30.11 $30.48
Long Term Debt 784,200,000 $30.70 $29.88

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $9.51 (USD) for ACCO:NYS. We also generated a valuation of $13.62 (USD) using other metrics and comparables.
The comparable companies were Pitney Bowes (PBI:NYS), Steelcase (SCS:NYS), HNI (HNI:NYS), Knoll (KNL:NYS) and Ennis (EBF:NYS).

Company ACCO:NYS End Date Value
Earnings/Share $0.36 (USD)
Book Value/Share $7.42 (USD)
Sales/Share $17.61 (USD)
Cash Flow/Share $1.07 (USD)
EBITDA/Share $1.97 (USD)
Price Based on Comps Adjustment Factor (%)
$13.68 (USD) -9.8
$18.31 (USD) -86.1
$16.52 (USD) -39.5
$0.33 (USD) -36.6
$32.64 (USD) -27.6
25.11 PE Ratio 37.99 0.00 66.91 24.49 0.00 22.58
1.22 PB Ratio 17.54 77.84 1.77 3.25 3.02 1.82
0.51 PS Ratio 0.94 0.40 0.65 1.01 1.11 1.53
8.46 PCF Ratio 12.37 3.36 26.17 7.97 14.00 10.34
13.04 EV to EBITDA 16.57 12.94 14.04 11.64 34.67 9.58


Using a multiples approach we generated a valuation of  $9.23 (USD) for ACCO:NYS

Company ACCO:NYS End Date Value
Earnings/Share $0.36 (USD)
Book Value/Share $7.42 (USD)
Sales/Share $17.61 (USD)
Cash Flow/Share $1.07 (USD)
EBITDA/Share $1.97 (USD)
Price Based on Comps Adjustment Factor
$3.70 (USD) 0
$10.16 (USD) 0
$10.45 (USD) 0
$7.07 (USD) 0
$14.77 (USD) 0
Ratios Ratio Average
PE Ratio 10.29
PB Ratio 1.37
PS Ratio 0.59
PCF Ratio 6.62
EV to EBITDA 7.50

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ACCO:NYS for the last 10 years was  1.34

We ran the Adjusted Book Value for  ACCO:NYS and generated a book value of  $7.47 (USD)
By multiplying these we get an adjusted valuation of  $10.01 (USD)

Analyst Data

In the Stockcalc database there are 2 analysts that provide a valuation for ACCO:NYS. The 2 analysts have a concensus valuation for ACCO:NYS for 2021 of $13.00 (USD).


Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 4.5000 Outperform 2021-5-26

Current Price: 9.04 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 0.99 1.58
# EPS Analysts 2 1
Mean Revenue 1,988.80 2,086.30
# Revenue Analysts 2 1
Mean Target Price 13.00
Mean Cash Flow
Mean Net Income 95.80 155.20
Mean Debt Outstanding
Mean Tax Rate 29.00 29.00
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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