ACN
Accenture plc$215.00
Buy
Target $288.55
Report: Mar 09, 2026Technology • Information Technology Services • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$215.00+34.2%
Rec: BuyConviction: High
Entry Target
$215.00
(0% above current)
Fair Value
$288.55
(34% above current)
Stop Loss
$188.73
(12% below current)
Position Size
Full
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$325.71
52 Week Low$187.00
Avg. 3 Month Volume6.58M
Efficiency
LTM Gross Margin32.0%
LTM EBITDA Margin18.1%
LTM EBIT Margin14.7%
LTM Operating Margin14.4%
LTM ROA11.7%
LTM ROE24.7%
LTM ROIC58.8%
LTM ROCE23.7%
Capital Structure
Market Cap (MM)$132.0B
Enterprise Value (MM)$130.9B
Shares Outstanding616.99M
Total Debt (MM)$8.35B
Cash & Equivalents (MM)$9.40B
LTM Net Debt (MM)$-1.05B
LTM Net Debt/EBITDA-0.1x
Growth
TTM Rev. Growth7.3%
Last 3-Yr Rev. CAGR4.5%
Last 3-Yr EBITDA CAGR4.9%
Last 3-Yr EPS CAGR3.9%
Valuation
Street Target Price$299.92
LTM EV/Revenue1.8x
LTM EV/Gross Profit5.7x
LTM EV/EBIT12.4x
LTM EV/EBITDA10.0x
LTM P/E17.3x
LTM EV/FCF10.5x
LTM P/FCF10.6x
LTM P/TB3.3x
LTM P/B4.2x
Dividend Yield3.1%
Payout Ratio50.4%
Executive SummarySituation: Current price is $215.0 versus fair value $288.55 (34.2% expected return), and valuation confidence is stable. Debate: Bull case depends on Acceleration of GenAI Bookings and Revenue As enterprises move from AI experimentation to full-scale deployment, Accenture's bookings (currently $1.4B/quarter) should accelerate, validating the 'reinvention' thesis. Bear case centers on AI Cannibalization of Traditional Services Generative AI could automate high-margin coding and testing work, reducing the total billable hours required for projects and compressing margins. Conclusion: Recommendation is Buy with Full sizing and Long-Term horizon.
Bull Case
Accenture's scale makes it the only firm capable of managing the 'complexity gap' for global enterprises integrating fragmented AI tools. Superior capital efficiency (57.2% ROIC) and $11.5 billion in annual FCF provide a massive buffer for continued M&A and shareholder returns.
Bear Case
Generative AI could automate traditional coding and testing tasks, cannibalizing Accenture's labor-intensive billable hour model. Persistent federal procurement headwinds and DOJ investigation could lead to debarment or significant fines, impacting 8% of total revenue.
Key Catalysts
Near-Term (0-6 months)Impact: High
Acceleration of GenAI Bookings and Revenue As enterprises move from AI experimentation to full-scale deployment, Accenture's bookings (curre...
Mid-Term (6-18 months)Impact: High
Resolution of DOJ Federal Investigation A settlement or clarification regarding the Accenture Federal Services investigation would remove a...
Long-Term (18+ months)Impact: Moderate
Accenture is highly relevant now as the stock trades at a 43% discount to its historical P/FCF multiple while GenAI bookings are hitting rec...
Primary Risks
Concern: Medium
AI Cannibalization of Traditional Services Generative AI could automate high-margin coding and testing work, reducing the total billable hou...
Concern: Medium
Federal Debarment or Significant Fines The DOJ investigation into Accenture Federal Services could lead to a loss of government contracts, w...
Concern: Medium
Stewardship is strong but hampered by low insider 'skin in the game.' The governance outcome tree is currently focused on the DOJ investigat...
Recent Activity
2025-03-20SEC Filing (8-K)
-7.26%Accenture reports Q2 FY25 results with 5% revenue growth and $1.4B in generative AI bookings
2024-12-19SEC Filing (8-K)
+7.06%Accenture reports first-quarter fiscal 2025 results with strong revenue growth and raised outlook
2024-09-26SEC Filing (8-K)
+5.57%Accenture reports Q4 and full-year fiscal 2024 results with record new bookings and strong financial performance
2024-06-19Press Release
+7.29%Accenture Announces Intent To Acquire Fibermind To Strengthen Fiber And Mobile 5G Network Services
2024-03-21SEC Filing (8-K)
-9.31%Accenture reports Q2 FY24 results with $21.6B in new bookings and $600M in generative AI
Valuation Table
9.8/10Decision Grade
Scenario Range
$195
Bear
$272
Base
$326
Bull
$215