ACN
Accenture plc
$179.24
Platform & Compounding FCF
80%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 42.6% below fair value
You pay
$179.24
Bear
$237.06
Fair
$312.08
Bull
$384.73
Bear
$237.06
+32.3%
6% stage 1 growth, 11% discount
Fair
$312.08
+74.1%
9% stage 1 growth, 11% discount
Bull
$384.73
+114.6%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
11.5x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $299.92 from 53 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $312.08 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions