QualityDipStocks / Consumer Discretionary · Business Services
Accenture ACN
Not in a dip by our rules: 11% below its 52-week high.
A quality company trading well below our fair value estimate, 15% over its Market Value.
- Fair value est.
- $340.27+32%
- Market Value
- $223.82price +15%
- Off 52-wk high
- −11%
- Risk vs market
- Lowbeta 0.03
5 bullish · 4 bearish See why
Key levels
Every level vs today’s $258.24
- 52-wk lowlowest close, 1 year$124.44−51.8%
- Market Valueavg paid since Oct 1$223.82−13.3%
- PriceFri Oct 30 close$258.24you are here
- 52-wk highhighest close, 1 year$288.54+11.7%
- Fair value est.base case$340.27+31.8%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 5.0% ±2 points. Bear = 10.5% and 3.0%; bull = 8.5% and 7.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, ACN’s free cash flow would need to stay flat for five years; our estimate uses 5%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much ACN moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 3.9× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.03
- Volatility
- 50% vs 13% SPY
- Correlation SPY
- 0.01
- Correlation QQQ
- −0.16
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $340.27, 32% above the price.
ValuationFree-cash-flow yield of 7.4% (price / FCF 13.5×): $11.6B of free cash in the last 12 months.
Cash returnsShare count down 3.8% in a year: $7.5B of buybacks over 12 months.
ProfitabilityReturn on invested capital of 30%, above the 9.5% discount rate our DCF uses.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 4 of 5
Balance sheetDebt rose 900% to $10.1B from FY2024 to FY2026.
ProfitabilityGross margin of 32%, below the 39% median for the 120 Consumer Discretionary companies we cover.
GrowthSales grew 5.0% a year over the last three fiscal years, below the 6.1% median for the 179 Consumer Discretionary companies we cover.
ValuationTrades 15.4% above its Market Value of $223.82, the average price paid since the Oct 1 filing.
Who’s talking about it
Notable investors, executives, analysts and public figures on Accenture in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Business Services
All fundamentals
P/E 18.7 · FCF yield 7.4% · ROE 27%
Valuation
- P/E
- 18.7×3-yr-end avg 21.8× · Consumer Discretionary median 20.9×
- Price / FCF
- 13.5×
- FCF yield
- 7.4%
- EV / EBITDA
- 12.1×
- Price / sales
- 2.11×
- Price / book
- 4.95×
- Market cap
- $156Bprice × diluted shares
- Enterprise value
- $154B
Growth
- Revenue, 12 months
- $74.2B
- Sales growth, 12 months
- +6.5%vs the 12 months before
- Sales growth, 3 yrs
- +5.0%/yrfrom FY2023
- Diluted EPS, 12 months
- $13.56
- EPS growth, last FY
- +11.6%
- Net income, 12 months
- $8.4B
- Net income growth
- +9%12 months vs before
Profitability
- Gross margin
- 32.0%
- Operating margin
- 15.4%
- Net margin
- 11.3%
- FCF margin
- 15.7%
- Return on equity
- 27%
- Return on invested capital
- 30%
Balance sheet
- Cash & short-term inv.
- $12.8B
- Total debt
- $10.1B
- Net cash
- $2.7B
- Debt / equity
- 0.32×
- Interest coverage
- 37.6×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $11.6B
- FCF growth, 12 months
- +7%
- Dividend yield
- 2.55%$4.0B paid
- Payout ratio
- 48%
- Buybacks, 12 months
- $7.5B4.8% of market cap
- Share count, 1 year
- −3.8%diluted shares vs a year ago
- Stock-based comp
- $2.1B
Trailing 12 months to Aug 31, 2026; balance sheet at Aug 31, 2026. From Accenture’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $340.27 · MV $223.82 · FCF value $453.83
Assumes 5.0% growth for 5 years (revenue grew 5.0% a year FY23–FY26), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $19.20 a share (fiscal year to Aug 31, 2026), from the 10-K filed Oct 16, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 70 · 5 days +3.6%
The business
FCF $11.6B · Sales +6%
- Free cash flow, 12 months$11.6B
- Free-cash-flow yield7.0%
- Free-cash-flow margin16%
- Gross margin32%
- Operating margin15%
- Return on invested capital22%
- Return on equity27%
- Sales growth (latest quarter vs year-ago quarter)+6%
- Net debt / EBITDA0.0×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when ACN fires a reversal signal
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