Accenture plc (ACN) Stock Valuation — DCF Analysis
Information Technology Services · NYSE
Current Price
$170.28
Intrinsic Value
$241.53
+29.5% margin of safety
COMPETITIVE MOAT
↑Deep Client Relationships
Accenture cultivates long-term, embedded relationships with large enterprises, making it difficult for competitors to displace them. This trust is built on years of successful project delivery and strategic guidance.
↑Talent & Expertise Network
The company's vast global network of skilled professionals and specialized expertise provides a significant competitive advantage. This allows Accenture to tackle complex, multi-disciplinary projects that others cannot.
↑Brand & Reputation
Accenture's strong brand recognition and reputation for reliability and innovation attract top talent and clients. This established trust is a powerful differentiator in the IT services market.
INVESTMENT RISKS
↓AI Disruption Fears
Concerns exist that AI could automate some consulting tasks, potentially impacting Accenture's traditional service model. While the company sees AI as an accelerator, market perception lags.
↓Intense Competition
The IT services industry is highly competitive, with numerous global and niche players vying for market share. This can pressure pricing and margins.
↓Economic Sensitivity
Accenture's revenue is tied to client spending on technology and business transformation, making it susceptible to economic downturns and budget cuts.
Base case
ACN base case valuation
A base case discounted cash flow model for ACN estimates an intrinsic value of about $241.53 per share, against a current price of $170.28. The model assumes 7.7% annual free cash flow growth, a 10.0% discount rate, and a 8x exit multiple.
Intrinsic Value
$241.53
Margin of safety
+29.5%
Expected annual return
+7.2%
Base case assumptions: 7.7% annual growth, 10.0% discount rate, 8x exit multiple, 5 year projection. Data as of 2026-06-12.
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)
$116.87
FCF/Share (TTM)
$20.25
ROIC (TTM)
17.0%
ROE (TTM)
24.8%
P/FCF
8.4x
EV/EBITDA
8.3x
FCF Yield
11.93%
Debt/Equity
0.27x
Based on trailing twelve-month data, ACN shows a free cash flow per share of $20.25 and a ROIC of 17.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 8.4x and FCF yield of 11.93% 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 $20.25 in free cash flow per share. At the current price of $170.28, 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 11.93%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. 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 ($20.25) 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 0.27x, 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 17.0% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
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 0.27x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 8.3x, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.