Accenture (ACN:NYS) Fundamental Valuation Report

Fundamental Valuation Report


Technology:Information Technology Services

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$154.45 (USD) 26/10/2018

Weighted Valuation
$164.65 (USD)

Overall Rating
Undervalued by 6.6%

Valuation Models Analyst Consensus: $179.67 (USD)
(in order of importance) Discounted Cash Flow: $138.05 (USD)
Adjusted Book Value: $172.83 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (ACN:NYS USD)

Price 154.45
Range 152.86 – 156.08
52 week 142.36 – 174.19
Open 154.30
Vol / Avg. 2.44M/2.33M
Mkt cap 98.73B
P/E 24.36
Div/yield 2.66/0.02
EPS 6.34
Shares 638.99M
Beta 0.98

Company Description

Accenture is a leading provider of management consulting, technology services, and outsourcing. The firm is truly global, with operations in over 120 countries and roughly 450,000 employees. The company has extensive industry experience and relationships with many market leading firms, and 94 of the Fortune Global 100 companies and more than 80% of the Fortune Global 500 companies work with Accenture. While the firm is headquartered in Dublin, Ireland, the majority of operations are conducted via New York and Chicago.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ACN:NYS

Using a discounted cash flow model we generated an intrinsic value of $138.05 (USD) for ACN:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ACN:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $138.05 1% 5% 1% 5%
WACC (or Ke) 8.65 $168.10 $117.05
Terminal Growth Rate 3.00 $119.09 $165.17
Tax Rate 0.27 $148.46 $127.63
Cash Flow 8,589,170,000 $130.18 $145.91
Capital Expenditures -463,166,800 $137.64 $138.45
Long Term Debt 27,230,000 $138.05 $138.04

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $105.98 (USD) for ACN:NYS. We also generated a valuation of $94.80 (USD) using other metrics and comparables.
The comparable companies were Cognizant Tech Solns (CTSH:NAS), IBM (IBM:NYS) and Infosys (INFY:NYS).

Company ACN:NYS End Date Value
Earnings/Share $6.34 (USD)
Book Value/Share $15.32 (USD)
Sales/Share $61.85 (USD)
Cash Flow/Share $8.93 (USD)
EBITDA/Share $10.31 (USD)
Price Based on Comps Adjustment Factor (%)
$156.03 (USD) -49.7
$82.17 (USD) 0.0
$182.72 (USD) -4.7
$137.51 (USD) -43.8
$125.75 (USD) -6.3
ACN:NYS Ratios Used Average Values CTSH:NAS IBM:NYS INFY:NYS
27.28 PE Ratio 24.61 31.11 24.23 18.49
11.11 PB Ratio 5.37 4.20 7.45 4.44
2.75 PS Ratio 2.95 2.93 1.73 4.20
19.07 PCF Ratio 15.41 17.23 8.65 20.35
15.94 EV to EBITDA 12.20 12.93 10.31 13.36


Using a multiples approach we generated a valuation of  $145.04 (USD) for ACN:NYS

Company ACN:NYS End Date Value
Earnings/Share $6.34 (USD)
Book Value/Share $15.32 (USD)
Sales/Share $61.85 (USD)
Cash Flow/Share $8.93 (USD)
EBITDA/Share $10.31 (USD)
Price Based on Comps Adjustment Factor
$136.59 (USD) 0
$163.67 (USD) 0
$138.53 (USD) 0
$157.44 (USD) 0
$128.99 (USD) 0
Ratios Ratio Average
PE Ratio 21.54
PB Ratio 10.69
PS Ratio 2.24
PCF Ratio 17.64
EV to EBITDA 12.51

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ACN:NYS for the last 10 years was  10.67

We ran the Adjusted Book Value for  ACN:NYS and generated a book value of  $16.20 (USD)
By multiplying these we get an adjusted valuation of  $172.83 (USD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for ACN:NYS. The 9 analysts have a concensus valuation for ACN:NYS for 2019 of $179.67 (USD).

ACN:NYS Accenture

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
7 3 0 4.1818 Outperform 2018-10-25

Current Price: 154.45 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 7.22 7.95 8.70
# EPS Analysts 10 6 3
Mean Revenue 42,609.30 45,906.60 49,978.50
# Revenue Analysts 6 5 3
Mean Target Price 179.67
Mean Cash Flow 8.96 10.10 10.49
Mean EBITDA 7,277.20 7,751.60 8,339.00
Mean Net Income 4,658.50 5,090.60 5,542.60
Mean Debt Outstanding -4,424.00 -4,381.30 -4,507.80
Mean Tax Rate 23.65 24.30 24.30
Mean Growth Rate 9.75
Mean Capital Expenditure 633.60 671.90 669.60

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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