The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$4,224.05||$4,531.09||$4,955.59||$5,628.00||$6,272.50|
|Source||Analyst x9||Analyst x10||Analyst x10||Analyst x5||Analyst x2|
Discounted (@ 8.96%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $6,273 × (1 + 2.47%) ÷ (8.96% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$84,140 = $19,603 + $64,537
Value = Total value / Shares Outstanding ($84,140 / 615)Discount to Share Price
Value per share:
Current discount (share price of $152.66): -11.53%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.96% = 2.47% + (0.861 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($92,951,480,957).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.861 = 0.861 (1 + (1- 35%) (0.03%))
Levered Beta used in calculation = 0.861
Mr. Pierre Nanterme has been the Chief Executive Officer of Accenture Plc since January 1, 2011 and its Chairman since February 1, 2013. Mr. Nanterme has been the Chief Executive Officer of Accenture Holdings plc (Alternate Name, Accenture SCA) since April 2015. Mr. Nanterme is responsible for managing and driving the annual business performance of the company, formulating and executing long-term strategies and interacting with clients, employees, investors and other stakeholders. He is Accenture’s primary decision- and policy-maker, setting the tone for its values, ethics and culture. He has been with Accenture for 32 years. He is a proven leader with deep expertise in developing strong client relationships. He served as the Group Chief Executive of Financial Services Operating Group at Accenture Plc from September 1, 2007 to December 31, 2010. He served as the Chief Leadership Officer of Accenture Plc from May 2006 to September 2007 and served as its Managing Director of France from November 2005 to September 2007. He was responsible for Accenture's leadership development program. In that role, he oversaw Accenture's corporate citizenship initiatives globally. In 2006, he joined Accenture’s global leadership team, where he contributed to the planning and execution of Accenture’s successful long-term business strategy and the implementation of its global operating model. He served as Managing Director of Accenture's Financial Services operating group in Europe, Africa and Latin America. Mr. Nanterme spent most of his 23-year career with Accenture in the Financial Services operating group. He served as Managing Director of Accenture's Financial Services Core Europe operating unit and served as Global Managing Director for its Insurance industry group. Other leadership positions he has held at Accenture include Managing Director of the Strategy practice in West Europe and Managing Director of its client group in France, Belgium, Luxembourg and the Netherlands. At Accenture, he has held a wide variety of leadership positions across key parts of its business. He has been a Director at Accenture plc since October 20, 2010 and Accenture Holdings plc since April 2015. He has been the President of the MEDEF Commission for Economic Affairs and Public Finance in France since 2005 and is a Member of its Executive Board. He serves on the steering board of the European Commission’s European Cloud Partnership. He is a Member of the BUSINESSEUROPE Corporate Advisory and Support Group and serves on the executive board of TransAtlantic Business Dialogue. He was awarded the insignia of Chevalier (Knight) of the Legion of Honour in France in 2010. Mr. Nanterme holds a Master of Science degree in management from ESSEC Business School (École Supérieure des Sciences Économiques et Commerciales) in Paris.
Average tenure and age of the Accenture management team in years:
Average tenure and age of the Accenture board of directors in years:
Accenture plc provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services that help clients accelerate and deliver digital transformation, and enhance business results through industry-specific solutions for communications, media, and high tech industries, as well as for software platforms. The company’s Financial Services segment offers services that address profitability pressures, industry consolidation, regulatory changes, and the need to continually adapt to new digital technologies. This segment serves clients in banking, capital markets, and insurance industries. Its Health & Public Service segment provides research-based insights and offerings, including consulting services and digital solutions to help clients deliver social, economic, and health outcomes. This segment serves healthcare payers and providers, as well as government departments and agencies, public service organizations, educational institutions, and non-profit organizations. The company’s Products segment helps clients enhance their performance in distribution, sales, and marketing; in research and development, and manufacturing; and in business functions, such as finance, human resources, procurement, and supply chain. This segment serves clients in consumer goods, retail, and travel services industries; automotive, freight and logistics, industrial and electrical equipment, consumer durable and heavy equipment, and construction and infrastructure management companies; and pharmaceutical, medical technology, and biotechnology companies. Its Resources segment enables clients to develop and implement strategies, improve operations, manage complex change initiatives, and integrate digital technologies. This segment serves clients in chemicals, energy, forest products, metals and mining, and utilities and related industries. Accenture plc was founded in 1989 and is based in Dublin, Ireland.
1 Grand Canal Square,
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|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||ACN||Class A Common Shares||New York Stock Exchange||US||USD||19. Jul 2001|
|DB||CSA||Class A Common Shares||Deutsche Boerse AG||DE||EUR||19. Jul 2001|
|BMV||ACN N||Class A Common Shares||Bolsa Mexicana de Valores||MX||MXN||19. Jul 2001|
|BOVESPA||ACNB34||EACH BDR REPR 1 CLS'A'USD0.0000225||Bolsa de Valores de Sao Paulo||BR||BRL||24. Aug 2015|
|Industry:||IT Consulting and Other Services|