Accenture plc

NYSE:ACN Stock Report

Market Cap: US$221.2b

Accenture Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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.

Below Fair Value: ACN ($357.07) is trading below our estimate of fair value ($396.04)

Significantly Below Fair Value: ACN is trading below fair value, but not by a significant amount.

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 Ratio30.7x
EarningsUS$7.26b
Market CapUS$221.17b

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 Average28.9x
IBM International Business Machines
31.1x10.5%US$194.4b
IT Gartner
37.6x0.5%US$39.9b
CTSH Cognizant Technology Solutions
17.1x9.4%US$37.8b
EPAM EPAM Systems
29.6x10.1%US$12.9b
ACN Accenture
30.7x9.5%US$221.2b

Price-To-Earnings vs Peers: ACN is expensive based on its Price-To-Earnings Ratio (30.7x) compared to the peer average (28.9x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAOP Taoping
1.1xn/aUS$2.35m
GTCH GBT Technologies
0.1xn/aUS$1.68m
DLTI DLT Resolution
0.3xn/aUS$228.03k
TMNA Agri-Fintech Holdings
0.0004xn/aUS$129.25k
ACN 30.7xIndustry Avg. 44.3xNo. of Companies5PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ACN is good value based on its Price-To-Earnings Ratio (30.7x) compared to the US IT industry average (44.3x).

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 Ratio30.7x
Fair PE Ratio50.2x

Price-To-Earnings vs Fair Ratio: ACN is good value based on its Price-To-Earnings Ratio (30.7x) compared to the estimated Fair Price-To-Earnings Ratio (50.2x).

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$357.07
US$380.21
+6.5%
7.8%US$450.00US$307.00n/a26
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$292.00n/a26
Mar ’25US$380.99
US$374.25
-1.8%
9.0%US$440.00US$271.00n/a25
Feb ’25US$370.91
US$373.05
+0.6%
9.0%US$440.00US$271.00n/a26
Jan ’25US$350.91
US$360.80
+2.8%
8.6%US$410.00US$271.00n/a25
Dec ’24US$338.06
US$336.16
-0.6%
10.1%US$410.00US$247.00n/a25
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
Mar ’24US$263.59
US$307.98
+16.8%
9.2%US$360.00US$245.00US$380.9922
Feb ’24US$283.60
US$307.98
+8.6%
9.2%US$360.00US$245.00US$370.9122
Jan ’24US$266.84
US$308.14
+15.5%
9.4%US$360.00US$245.00US$350.9121
Dec ’23US$302.83
US$308.90
+2.0%
8.5%US$360.00US$258.00US$338.0621
Nov ’23US$281.47
US$308.90
+9.7%
8.5%US$360.00US$258.00US$300.6421

Analyst Forecast: Target price is less than 20% higher than the current share price.

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