Accenture plc (ACN) Stock Valuation — PE Analysis
Information Technology Services · NYSE
Current Price
$193.40
PE Ratio (TTM)
14.4x
Intrinsic Value
$245.89
+21.3% margin of safety
COMPETITIVE MOAT
↑Deep Client Relationships
Accenture cultivates long-term partnerships with large enterprises, embedding itself in critical business processes. This creates significant switching costs for clients.
↑Global Talent & Scale
Its vast network of skilled professionals and global delivery centers provides unparalleled capacity and expertise. This scale is difficult for competitors to replicate.
↑Brand & Reputation
Accenture's established brand signifies trust and reliability in complex IT services. This reputation attracts top talent and major client engagements.
INVESTMENT RISKS
↓Execution & Integration Risks
Accenture faces challenges in seamlessly integrating acquisitions and executing large-scale digital transformations for clients. Project delays can impact revenue.
↓Talent Acquisition & Retention
Attracting and retaining top IT talent in a competitive market is crucial. High employee turnover can disrupt service delivery and client relationships.
↓Economic Sensitivity
As a discretionary spending provider, Accenture's business is susceptible to economic downturns. Reduced IT budgets can lead to project cancellations or delays.
Base case
ACN base case PE valuation
A base case PE valuation for ACN estimates a fair value of about $245.89 per share, against a current price of $193.4. The model assumes 8.5% annual earnings growth, a 14.14x target PE multiple, and a 10% discount rate.
Intrinsic Value
$245.89
Margin of safety
+21.3%
Expected annual return
+4.9%
Base case assumptions: 8.5% annual earnings growth, 14.14x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ACN PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Accenture plc respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
14.4x
PEG Ratio
1.29
Earnings Yield
7.07%
ROE (TTM)
26.8%
Revenue/Share (TTM)
$123.31
Dividend Yield
3.32%
Debt/Equity
0.42x
Frequently Asked Questions
What is the PE ratio of ACN?
The trailing twelve-month PE ratio of ACN reflects how much investors pay per dollar of Accenture plc's earnings. This metric is most useful when compared to Information Technology Services peers and the company's own historical range.
Is ACN overvalued based on PE ratio?
ACN's PE of 14.4x combined with a PEG ratio of 1.29 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Information Technology Services, a DCF analysis may be more appropriate.
How do I value ACN stock using PE ratio?
To value Accenture plc using PE: (1) Compare the current PE (14.4x) against the Information Technology Services median to assess relative pricing, (2) check the PEG ratio (1.29) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ACN?
ACN's PEG ratio is 1.29, calculated by dividing the PE ratio (14.4x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ACN stock valuation?
PE ratio gives a quick relative read — how ACN is priced versus Information Technology Services peers. DCF provides an absolute value based on projected free cash flows. For ACN, with a strong ROE of 26.8%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ACN DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value ACN with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.