Is Accenture (ACN) Trading Above Its True Value? A Fresh Look at Current Valuation

Accenture (ACN) shares traded relatively flat recently, with the stock moving up less than 1% over the past day. Investors are keeping an eye on its longer-term performance after a challenging past quarter.

See our latest analysis for Accenture.

After a turbulent few quarters, Accenture’s share price has slid by over 31% year-to-date and its total shareholder return has fallen more than 35% in the past year. This reflects fading momentum as investors weigh shifting tech spending and recent earnings misses against its longer-term strengths. Short-term bumps aside, the company’s multi-year track record remains solid. However, sentiment suggests some caution about the pace of recovery.

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With the recent drop in share price and Accenture now trading at more than a 13% discount to its estimated intrinsic value, the big question is whether the stock is undervalued or if the market is appropriately factoring in its future growth. Could this be a compelling entry point, or is everything already priced in?

Most Popular Narrative: 17.8% Overvalued

According to user FCruz's widely followed narrative, Accenture's last close of $238.39 stands well above a fair value estimate of $202.38. The narrative breaks down key catalysts and expectations, framing the current price as potentially factoring in more optimism than the underlying outlook justifies.

After a sector de-rating, ACN trades around its long-run average multiple with superior profitability and returns on capital for a services name.

Read the complete narrative.

What’s propping up this ambitious valuation? The story hinges on a margin profile and cash flow strength rarely seen in the sector, plus a growth assumption that could surprise skeptics. You’ll want to see which specific forecasts drive this narrative’s bold conclusion.

Result: Fair Value of $202.38 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a decline in bookings and elongated client decision cycles remain potential risks. These factors could quickly alter this valuation outlook.

Find out about the key risks to this Accenture narrative.

Build Your Own Accenture Narrative

If you think differently or want to dig into the numbers yourself, you can craft your own take on Accenture’s outlook in just a few minutes. Do it your way

Prefer to form your own view? Our platform makes it easy to explore a stock's fundamentals and create your own narrative in minutes.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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