Accenture plc (ACN)
Valuation Overview•Is Accenture plc Overvalued or Undervalued?
Commands a peer premium multiple, but this multiple is justified by a strong intrinsic cash flow value.
High-quality fundamentals with a strong composite quality score of 77/100, backed by robust profitability and solvency.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street is cautious, forecasting potential downside. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
ACN demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 27.3% ROIC). This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company exhibits steady, low-single-digit revenue growth paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 15.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $18.7B | +6.5% | +5.0% | +8.0% | +7.9% | |
| EBITDA | $3.5B | — | +11.7% | — | — | |
| Net Income | $2.0B | +9.0% | +6.8% | — | +7.4% | |
| EPS (Diluted) | $3.29 | +11.6% | +8.0% | +8.2% | +7.7% | |
| Free Cash Flow | $2.8B | +6.9% | +8.9% | +6.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 32.0% | 32.2% | 32.2% | 31.6% |
| Operating Margin | 15.8% | 14.9% | 14.8% | 14.7% |
| Net Margin | 11.3% | 11.2% | 11.1% | 10.9% |
| FCF Margin | 15.7% | 14.8% | 14.6% | 14.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'26Latest | $3.18 | $3.29 | +3.5% | ||
| Q2'26 | $3.70 | $3.80 | +2.7% | ||
| Q1'26 | $2.86 | $2.93 | +2.4% | ||
| Q4'25 | $3.74 | $3.94 | +5.3% | ||
| Q3'25 | $2.98 | $3.03 | +1.7% | ||
| Q2'25 | $3.30 | $3.49 | +5.8% | ||
| Q1'25 | $2.81 | $2.82 | +0.4% | ||
| Q4'24 | $3.42 | $3.59 | +5.0% |
Total return is +10.7% (1Y), outperforming the benchmark by +1.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +2.8% | -4.9% | — |
| 1Y | +10.7% | +1.0% | +2.7% |
| 3YCAGR | -3.8% | -22.4% | +5.8% |
| 5YCAGR | -4.8% | -13.9% | +7.3% |
| 10YCAGR | +9.7% | -3.4% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Accenture plc (ACN) valuation, health, and returns.
Accenture plc is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. undervalued (implying +44.0% upside to DCF intrinsic value of $375.19)
Accenture plc has multiple valuation anchors: DCF Intrinsic Value: $375.19 | Peer Relative Fair Value: $225.53 | Wall Street Analyst Target: $230.05 (implying -11.7% upside). A convergence of these signals offers higher conviction.
Accenture plc displays good financial health with a composite quality score of 77/100, supported by a Altman Z-Score of 4.9 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 27.3%.
Accenture plc pays a 2.5% dividend yield, covered by a 48% payout ratio with 6 years of growth, supplemented by a 4.7% buyback yield.
Accenture plc's current growth trajectory is Stable. The company achieved +6.5% 1Y revenue growth and +11.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +5.0%.
Wall Street consensus is Buy based on 53 analysts, beating EPS expectations in 92% of recent quarters with a 9-quarter streak. The consensus price target represents a -11.7% change from current levels.
Investment risks for Accenture plc include: -56.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.01x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.