Accenture plc Class A Ordinary Shares (Ireland) (ACN) Company Bio
Accenture plc provides management consulting, technology, and business process outsourcing services worldwide. The Company's segment includes Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. The company was founded in 1989 and is based in Dublin, Ireland.
ACN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Accenture plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Accenture plc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Accenture plc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 243.02; that's higher than 96.33% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet suggests that 3% of the company's capital is sourced from debt; this is greater than only 9.11% of the free cash flow producing stocks we're observing.
ACN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 53.92% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ALRM, EXLS, ROG, HPE, and TXN can be thought of as valuation peers to ACN, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Accenture plc (NYSE:ACN) has steady revenue growth and operating margins going into the year due to its strong capabilities and deep relationships with its customers. Potential investors would have to pay forward 16.1x EV/EBITDA for a company with not much upside compared to its peers in terms of consensus financial...
It is a virtual reality exercise used to assess graduates applying for a technology role at Accenture, the professional services group. The advantage of introducing VR to a candidate assessment programme is that “seeing people in action is a better indicator of their potential”, says Adrian Love, Accenture’s recruitment director for the UK and Ireland. The virtual world is all encompassing, so “your brain cannot fake it”, he adds.