Accenture Valuation

Is ACN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ACN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$372.71
Fair Value
23.8% undervalued intrinsic discount
24
Number of Analysts

Below Fair Value: ACN ($283.96) is trading below our estimate of fair value ($372.71)

Significantly Below Fair Value: ACN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACN?

Key metric: As ACN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ACN. This is calculated by dividing ACN's market cap by their current earnings.
What is ACN's PE Ratio?
PE Ratio23.1x
EarningsUS$7.68b
Market CapUS$174.81b

Price to Earnings Ratio vs Peers

How does ACN's PE Ratio compare to its peers?

The above table shows the PE ratio for ACN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24x
IBM International Business Machines
37.1x12.0%US$219.0b
CTSH Cognizant Technology Solutions
15.4x7.8%US$33.7b
IT Gartner
24.6x-6.5%US$30.2b
DOX Amdocs
19x10.6%US$9.2b
ACN Accenture
23.1x7.8%US$174.8b

Price-To-Earnings vs Peers: ACN is good value based on its Price-To-Earnings Ratio (23.1x) compared to the peer average (24x).


Price to Earnings Ratio vs Industry

How does ACN's PE Ratio compare vs other companies in the US IT Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAOP Taoping
1.8xn/aUS$3.65m
GTCH GBT Technologies
0.08xn/aUS$1.68m
YCRM Yuengling's Ice Cream
0.09xn/aUS$746.48k
No more companies available in this PE range
ACN 23.1xIndustry Avg. 32.6xNo. of Companies7PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ACN is good value based on its Price-To-Earnings Ratio (23.1x) compared to the US IT industry average (32.6x).


Price to Earnings Ratio vs Fair Ratio

What is ACN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.1x
Fair PE Ratio41.4x

Price-To-Earnings vs Fair Ratio: ACN is good value based on its Price-To-Earnings Ratio (23.1x) compared to the estimated Fair Price-To-Earnings Ratio (41.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ACN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$283.96
US$356.71
+25.6%
9.8%US$415.00US$280.00n/a24
Apr ’26US$313.58
US$363.66
+16.0%
8.2%US$415.00US$290.00n/a24
Mar ’26US$348.50
US$399.70
+14.7%
8.2%US$455.00US$323.00n/a24
Feb ’26US$384.95
US$398.87
+3.6%
8.3%US$455.00US$323.00n/a24
Jan ’26US$351.79
US$392.70
+11.6%
8.7%US$455.00US$323.00n/a24
Dec ’25US$362.37
US$379.60
+4.8%
8.0%US$450.00US$307.00n/a25
Nov ’25US$345.67
US$380.01
+9.9%
7.7%US$445.00US$307.00n/a26
Oct ’25US$351.98
US$377.26
+7.2%
7.6%US$415.00US$307.00n/a26
Sep ’25US$341.95
US$345.95
+1.2%
9.9%US$440.00US$292.00n/a26
Aug ’25US$328.08
US$346.95
+5.8%
9.9%US$440.00US$292.00n/a27
Jul ’25US$302.55
US$348.38
+15.1%
9.9%US$440.00US$292.00n/a27
Jun ’25US$282.29
US$380.13
+34.7%
8.9%US$440.00US$292.00n/a25
May ’25US$298.66
US$386.55
+29.4%
7.2%US$440.00US$292.00n/a26
Apr ’25US$339.17
US$386.55
+14.0%
7.2%US$440.00US$292.00US$313.5826
Mar ’25US$380.99
US$374.25
-1.8%
9.0%US$440.00US$271.00US$348.5025
Feb ’25US$370.91
US$373.05
+0.6%
9.0%US$440.00US$271.00US$384.9526
Jan ’25US$350.91
US$360.80
+2.8%
8.6%US$410.00US$271.00US$351.7925
Dec ’24US$338.06
US$336.16
-0.6%
10.1%US$410.00US$247.00US$362.3725
Nov ’24US$300.64
US$332.50
+10.6%
9.3%US$390.00US$247.00US$345.6724
Oct ’24US$307.11
US$335.02
+9.1%
9.2%US$390.00US$247.00US$351.9824
Sep ’24US$327.74
US$334.68
+2.1%
8.3%US$377.00US$258.00US$341.9524
Aug ’24US$320.97
US$333.56
+3.9%
8.4%US$377.00US$258.00US$328.0824
Jul ’24US$308.58
US$326.95
+6.0%
8.2%US$377.00US$258.00US$302.5523
Jun ’24US$305.20
US$307.66
+0.8%
8.6%US$360.00US$250.00US$282.2922
May ’24US$279.42
US$307.84
+10.2%
8.6%US$360.00US$250.00US$298.6622
Apr ’24US$285.81
US$307.84
+7.7%
8.6%US$360.00US$250.00US$339.1722
AnalystConsensusTarget
Consensus Narrative from 24 Analysts
US$356.71
Fair Value
20.4% undervalued intrinsic discount
24
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/22 04:12
End of Day Share Price 2025/04/22 00:00
Earnings2025/02/28
Annual Earnings2024/08/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Accenture plc is covered by 59 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Christopher HickeyAtlantic Equities LLP
David KoningBaird