ACN — Accenture plc
Snapshot dated September 30, 2026.
Accenture is a global professional services firm that provides strategy, consulting, technology, and operations services to clients across virtually every major industry. The company organizes its operations into five distinct areas of business—Strategy & Consulting, Song, Technology, Operations, and Industry X—which work together to help organizations implement digital transformations and manage business processes. Its client base consists of more than three-quarters of the Fortune Global 500, with services delivered by a workforce of over 700,000 employees across more than 120 countries. As one of the largest IT services and consulting providers, Accenture operates in direct competition with firms like IBM, Deloitte, and Tata Consultancy Services. Recently, the company has heavily pivoted its strategic focus toward generative artificial intelligence, committing $3B in investment over three years to build out its capabilities in data, analytics, and AI-driven business solutions.
Fair Value / Share
$431.02
Price on September 30, 2026
$177.46
Upside to fair value
142.88%
Margin of safety 58.8%
Upside is measured against what you pay; margin of safety is measured against what the business is worth.
Data by Equibles and SEC filings. Figures are as of September 30, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$177.46
Market Cap
$109,243,206,361
Net Income (TTM)
$7,789,752,000
Diluted Shares
615.6 million
EPS (TTM)
$12.65
Earnings Yield
7.13%
AI Analysis
Accenture’s current earnings yield is 7.13%, calculated by dividing its EPS (TTM) of $12.65 by its stock price of $177.46. This yield sits above the 4-5% return available from a safe, guaranteed alternative like a bond. Mechanically, this suggests that the market is currently pricing in a more conservative expectation for future earnings growth than would be the case if the yield were lower. For the earnings yield to rise, the stock price would need to decrease or the company's net income would need to grow; conversely, a higher stock price relative to earnings would compress this yield. This single metric does not account for the company's debt levels, its future capital expenditure requirements, or the stability of its long-term cash flow generation.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$10,592,234,000
Net Working Capital
-$2,723,191,000
Net Fixed Assets
$1,619,981,000
Invested Capital
-$1,103,210,000
Return on Capital
Capital-free operations
This business operates on negative invested capital — customers pay in advance, so the business funds itself rather than tying up capital. Combined with positive EBIT, that is the strongest possible outcome in this framework, not a missing result.
AI Analysis
Accenture plc currently demonstrates the strongest outcome within this framework, as its invested capital is -$1.1B while it generates an EBIT of $10.6B. Because the denominator in the return on capital equation is negative, a percentage result cannot be computed; however, this is not a data failure or a weak result. Rather, it indicates that the business operates without needing any of its own capital, effectively allowing customers or suppliers to fund its operations. This typically occurs when a company collects payment for services before they are delivered, creating a powerful cash-flow dynamic where the business earns a profit while tying up less than zero capital. While this measure highlights efficient capital usage, it does not capture the broader competitive landscape or industry-specific capital intensity, which can naturally vary significantly between sectors and business models.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| CTSHCognizant Technology Solutions Corp | $3.4B | $26.3B | 7.8x |
| EPAMEPAM Systems, Inc. | $563.2M | $4.8B | 8.6x |
| ACNAccenture plc | $10.6B | $105.8B | 10.0x |
Where ACN sits: 10.0x against a peer median of 8.2x (peers: 7.8x and 8.6x) — 22.3% above the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
ACN
Debt $5.1B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $3.2B of operating lease liabilities as of 2026-05-31 ($2.5B non-current, $750.9M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
CTSH
Named as a competitor: competes directly in global IT consulting, system integration, and managed services
Debt $568M. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $524M of operating lease liabilities as of 2026-03-31 ($384M non-current, $140M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
EPAM
Named as a competitor: competes in digital platform engineering and IT consulting services
Debt $25M. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $127.2M of operating lease liabilities as of 2026-06-30 ($87.9M non-current, $39.3M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — ACN
AI Analysis
Accenture plc (ACN) has an Enterprise Value of $105.8B and TTM operating earnings of $10.6B, resulting in an Acquirer's Multiple of 10.0x. Among the comparison group, CTSH holds the lowest multiple at 7.8x, while ACN carries the highest at 10.0x, with EPAM situated at 8.6x. The computed comparison for ACN is 10.0x against a peer median of 8.2x (peers: 7.8x and 8.6x) — 22.3% above the median. The Acquirer's Multiple measures the price required to purchase a business relative to its core operating profitability, excluding the distortions of debt or tax structures. This comparison would shift if ACN’s operating margins expanded relative to its peers or if the enterprise values of the companies adjusted, reflecting changing market assessments of their future earning power. The measure does not account for differences in capital intensity or specific business model variations between these service providers.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
6/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
This section is Strong because the company is generating positive accounting profits and free cash flow relative to its asset base, while producing cash flow from operations that exceeds net income.
- Return on Assets is positive at 11.74%
- Free Cash Flow to Total Assets is positive at 16.63%
- Cash flow from operations is 1.49 times greater than net income
A score of 3/3 indicates that current earnings are both positive and backed by actual cash receipts; this result would only change if net income or free cash flow turned negative.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
This section is Mixed because while liquidity improved and share count decreased, the company's long-term debt increased relative to its total assets.
- Long-term debt to assets rose to 0.08 from 0 a year ago
- The current ratio increased to 1.42 from 1.1
- Diluted shares outstanding decreased to 632.4 million from 635.9 million
The score reflects a trade-off between a stronger short-term liquidity position and the introduction of new long-term leverage on the balance sheet.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
1/4
This section is Weak because three out of four operational efficiency metrics declined compared to the prior year, despite an increase in cash flow generation.
- Return on Assets fell to 11.74% from 12.99% last year
- Free Cash Flow to Total Assets rose to 16.63% from 15.40%
- Gross Margin declined to 31.91% from 32.61%
- Asset Turnover decreased to 1.07 from 1.16
This score suggests that while cash generation is improving, the company is seeing lower profitability and lower revenue per dollar of assets than it did a year ago.
Change in ROA (↑)
FailChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
FailFramework conclusion
The company earns an overall FS-Score of 6/10, a result driven by strong current cash generation but offset by declining operational efficiency and a slight increase in leverage. This mid-range score indicates that while the company is currently profitable, there are signs of slowing momentum in how effectively it uses its assets and maintains its margins. The score does not determine if the stock is a good value, but it suggests that the company is not in a state of financial distress despite the recent operational softening.
- Return on Assets fell from 12.99% to 11.74% year over year
- Cash flow from operations is 1.49 times net income, showing high earnings quality
- Asset Turnover dropped to 1.07 from 1.16, indicating lower revenue efficiency
- Long-term debt increased from 0 to 0.08 relative to total assets
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$12.6B
+ After-Tax Interest Expense
$198.2M
= Unlevered Free Cash Flow
$12.8B
Business value (10-year DCF)
PV of Years 1–10
$103.7B
PV of Terminal Value
$156.6B
= Business Value
$260.3B
Terminal value share
60.15%
Business value → share value
Intrinsic Value (business)
$260.3B
+ Cash & Equivalents
$10.2B
− Debt
$5.1B
= Shareholders' Value
$265.3B
÷ Diluted Shares
615.6 million
= Fair Value / Share
$431.02
Divided by 615.6 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-05-31.
Risk bucket → discount rate
low (9%)
Year-1 FCF
$12.8B
Trailing twelve months.
FY2023 $9B · FY2024 $8.6B · FY2025 $10.9B
Growth rate (yrs 1–10)
6%
Terminal growth (after yr 10)
3%
AI Analysis
Accenture is assessed using a low risk bucket and a 9% discount rate, reflecting its consistent cash flow generation, strong balance sheet, and reliable demand for its IT consulting services. The forecast begins with a fixed Year-1 FCF of $12.8B, with annual growth projected at 6.00% for the first decade based on sustained enterprise technology spending. The terminal growth rate is fixed at 3%, a standard constraint ensuring the model does not assume growth rates outpace the broader economy indefinitely. Consequently, 60.1% of the total business value is derived from the terminal value, meaning the majority of this estimate rests on long-term assumptions. The model bridges the $260.3B intrinsic value of the business by adding $10.2B in cash and subtracting $5.1B in debt to reach a shareholder value of $265.3B. Divided across 615.6 million shares, this results in a fair value per share of $431.02. Against the current price of $177.46, the upside to fair value is 142.88%, and the margin of safety—the buffer built into the estimate to account for potential inaccuracies—is 58.8%. Because most of the valuation depends on cash flows beyond year 10, the result is most sensitive to the terminal growth rate assumption. Small shifts in that percentage or the underlying long-term growth expectation would alter the final fair value figure significantly.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
7.13% vs ~4-5% bond-yield benchmark
Return on Capital
Capital-free operations — negative invested capital, positive EBIT
Acquirer's Multiple
10.0x against a peer median of 8.2x (peers: 7.8x and 8.6x) — 22.3% above the median.
FS-Score
6/10 — Solid but mixed
Intrinsic Value
142.88% upside to fair value
The framework presents a conflict between the current valuation metrics and the operational performance of the business. Accenture displays robust operational results, as evidenced by the Return on Capital, which reflects capital-free operations, alongside an Earnings Yield of 7.13% that sits above the bond-yield benchmark. However, this is countered by the Acquirer's Multiple of 10.0x, which is 22.3% above the peer median, indicating the price is higher relative to operating earnings than those of similar firms. The FS-Score of 6/10 adds to the mixed picture, suggesting a solid but uneven operational performance. Meanwhile, the Intrinsic Value check suggests 142.88% upside to fair value, with a margin of safety of 58.8% calculated against the business's worth. This tension between the relatively expensive acquisition multiple and the favorable earnings yield highlights that while the business generates strong returns, the price paid for those earnings is elevated relative to the peer group. If the Acquirer's Multiple were to move into alignment with the peer median, the overall assessment would shift significantly.
Comments
Notes from readers on ACN — one each. Comments stay with the company, so they carry across to a later snapshot, and each one shows the date it was written.
Loading comments…