Information Technology Services · NYSE
Current Price
$180.26
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Accenture plc with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Accenture plc, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management, intelligent automation comprises robotic process automation, natural language processing, and virtual agents, and liquid application management services, as well as program, project, and service management services; strategy consulting services; critical data elements, data management and governance, data platform and architecture, product-based organization and skills, business adoption, and value realization services; engineering, and research and development digitization; smart connected product design and development; product platform engineering and modernization; product as-a-service enablement; products related to production and operations; autonomous robotics systems; the digital transformation of capital projects; and digital industrial workforce solutions. It also provides data-enabled operating models; technology consulting and artificial intelligence services; services related to talent and organization/human potential; digital commerce; infrastructure services, such as hybrid cloud, network, digital workplace and collaboration, service and experience management, infrastructure as code, and managed edge and IoT devices; cyber defense, applied cybersecurity, managed security, OT security, security strategy and risk, and industry security products; services related to technology innovation; and intelligent automation services. In addition, the company offers cloud, ecosystem, marketing, supply chain management, zero-based budgeting, customer experience, finance consulting, mergers and acquisitions, and sustainability services. Accenture plc was founded in 1951 and is based in Dublin, Ireland.
ROIC (TTM)
17.0%
ROE (TTM)
24.8%
FCF Yield
11.26%
Based on trailing twelve-month data, ACN shows a free cash flow per share of N/A and a ROIC of 17.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 11.26% are important context metrics when evaluating ACN's stock valuation relative to peers.
The intrinsic value of ACN depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ACN is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $180.26. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Accenture plc: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Information Technology Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ACN's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Accenture plc, this means projecting how much free cash flow the Information Technology Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. ACN's ROIC of 17.0% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ACN, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
