Accenture Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($366.37) is trading above our estimate of fair value ($344.61)

Significantly Below Fair Value: ACN is trading above our estimate of fair value.


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 Ratio30.3x
EarningsUS$7.57b
Market CapUS$229.16b

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 Average29.2x
IBM International Business Machines
32.4x10.5%US$207.0b
CTSH Cognizant Technology Solutions
17.4x9.2%US$39.4b
IT Gartner
35.6x0.5%US$37.1b
EPAM EPAM Systems
31.4x10.4%US$14.1b
ACN Accenture
30.3x8.5%US$229.2b

Price-To-Earnings vs Peers: ACN is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the peer average (29.2x).


Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAOP Taoping
1.3xn/aUS$2.70m
GTCH GBT Technologies
0.3xn/aUS$1.68m
DLTI DLT Resolution
0.5xn/aUS$405.39k
TMNA Agri-Fintech Holdings
0.0004xn/aUS$129.25k
ACN 30.3xIndustry Avg. 44.3xNo. of Companies6PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ACN is good value based on its Price-To-Earnings Ratio (30.3x) 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 Ratio30.3x
Fair PE Ratio49.9x

Price-To-Earnings vs Fair Ratio: ACN is good value based on its Price-To-Earnings Ratio (30.3x) compared to the estimated Fair Price-To-Earnings Ratio (49.9x).


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$366.37
US$396.03
+8.1%
8.0%US$455.00US$323.00n/a23
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$292.00n/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$247.00US$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
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

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:48
End of Day Share Price 2024/12/20 00:00
Earnings2024/11/30
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 here.

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 .

Analyst Sources

Accenture plc is covered by 57 analysts. 24 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