ACN
Accenture plc
$164.66
Platform & Compounding FCF
80%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 40.7% below fair value
You pay
$164.66
Bear
$211.00
Fair
$277.79
Bull
$342.45
Bear
$211.00
+28.1%
6% stage 1 growth, 11% discount
Fair
$277.79
+68.7%
9% stage 1 growth, 11% discount
Bull
$342.45
+108.0%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
10.5x
Market is pricing in (growth)
0.1%
vs 9.5% base
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 $198.56 from 53 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $277.79 per share.
Warnings
Wall Street's average price target is $198.56 (from 53 analysts). Our estimate is 61% above the consensus -- consider that gap carefully.
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