Accenture plc (ACN) Intrinsic Value & DCF Valuation
Information Technology Services · NYSE
Current Price
$173.17
Intrinsic Value
$228.45
+24.2% margin of safety
What Is Accenture plc's Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of Accenture plc (ACN) at $228.45 per share, compared with a market price of $173.17, a margin of safety of +24.2%. The base case assumes 6.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $164.58 to $303.2. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Accenture plc (ACN) Undervalued?
At $173.17, ACN trades about 24.2% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Global Scale and Talent Network
Accenture's vast global presence and extensive network of skilled professionals provide a significant advantage in serving multinational clients and delivering complex projects worldwide.
↑Deep Client Relationships and Trust
Long-standing relationships with Fortune 500 companies, built on a track record of successful delivery, create high switching costs and foster deep trust.
↑Industry Expertise and IP
Specialized knowledge across numerous industries, coupled with proprietary methodologies and intellectual property, allows Accenture to offer tailored and effective solutions.
INVESTMENT RISKS
↓Economic Downturn Impact on IT Spending
A significant economic slowdown could lead clients to reduce discretionary IT spending, impacting Accenture's revenue and project pipeline.
↓Execution Risk on Large Transformation Projects
The complexity of large-scale client transformations carries inherent execution risks, which, if realized, could damage reputation and client relationships.
↓Geopolitical and Regulatory Uncertainty
Global geopolitical instability and evolving regulatory landscapes can disrupt operations and create compliance challenges for a multinational service provider.
Base case
ACN base case valuation
Intrinsic Value
$228.45
Margin of safety
+24.2%
Expected annual return
+5.7%
Base case assumptions: 6.0% annual growth, 10.0% discount rate, 8x exit multiple, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ACN valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Accenture plc respond.
Open DCF Calculator for ACNCompany Overview
Accenture plc is a global professional services firm that delivers a wide array of strategy, consulting, interactive, technology, and operations services worldwide. Its comprehensive offerings include application services such as agile transformation, DevOps implementation, application modernization, enterprise architecture, software and quality engineering, and data management. It also specializes in intelligent automation, incorporating robotic process automation, natural language processing, and virtual agents, alongside liquid application management and various program, project, and service management solutions. The company provides strategic consulting, focusing on critical data elements, data governance, platform architecture, and enabling product-centric organizations to ensure business adoption and value realization. Accenture supports the digitization of engineering and research & development, designs and develops smart connected products, modernizes product platforms, and facilitates product-as-a-service models. It also offers solutions for production and operations, autonomous robotics systems, digital transformation of capital projects, and digital industrial workforce solutions. Further services encompass data-enabled operating models, technology consulting, and artificial intelligence expertise. Accenture assists with talent and organizational development (human potential), digital commerce, and robust infrastructure services covering hybrid cloud, networking, digital workplace and collaboration, service and experience management, infrastructure as code, and managed edge and IoT devices. Its cybersecurity portfolio includes cyber defense, applied and managed security, operational technology (OT) security, security strategy and risk management, and industry-specific security products. The company also drives technology innovation and intelligent automation initiatives. Additionally, Accenture provides cloud solutions, ecosystem development, marketing strategies, supply chain management, zero-based budgeting, customer experience enhancement, finance consulting, mergers and acquisitions support, and sustainability services. Established in 1951, Accenture plc is headquartered in Dublin, Ireland.
Financial Metrics — ACN Stock Valuation Data
Revenue/Share (TTM)
$119.40
FCF/Share (TTM)
$20.55
ROIC (TTM)
16.9%
ROE (TTM)
25.0%
P/FCF
8.4x
EV/EBITDA
8.2x
FCF Yield
11.87%
Debt/Equity
0.26x
Based on trailing twelve-month data, ACN shows a free cash flow per share of $20.55 and a ROIC of 16.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 8.4x and FCF yield of 11.87% are important context metrics when evaluating ACN's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of ACN?
Accenture plc currently generates $20.55 in free cash flow per share. At the current price of $173.17, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is ACN undervalued?
ACN trades at a P/FCF ratio of 8.4x with a free cash flow yield of 11.87%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether ACN is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value ACN stock using DCF?
To perform a DCF valuation on Accenture plc: (1) Start with the trailing free cash flow per share ($20.55) 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 — with a debt-to-equity of 0.26x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to ACN?
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 company will produce over the next 5-10 years, shaped by Information Technology Services trends, then discounting those amounts to today's dollars. ACN's ROIC of 16.9% reflects how efficiently the company converts invested capital into profit.
How does WACC affect ACN stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ACN, with a debt-to-equity ratio of 0.26x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 8.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See ACN PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value ACN with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.