Previous Close | $279.99 |
AI Value | $196.02 |
Upside potential | -30% |
Accenture plc (ACN) is a global leader in professional services, specializing in IT consulting, digital transformation, and outsourcing. The company operates across three primary segments: Communications, Media & Technology (32% of FY23 revenue), Financial Services (20%), and Health & Public Service (19%). Accenture's competitive advantage lies in its end-to-end service capabilities, deep industry expertise, and a vast partner ecosystem (including AWS, Microsoft, and SAP). The firm has consistently outperformed peers like IBM and Deloitte in revenue growth (8% YoY in FY23) due to its focus on high-margin digital/cloud services (now ~70% of revenue). Its 'rotate to the new' strategy emphasizes next-gen tech (AI, metaverse, sustainability), positioning it as a transformation partner for Fortune 500 clients.
Invested $1.1B in R&D (2023) with 3,500+ patents. Launched Accenture LearnVantage for AI upskilling and $3B AI investment fund. Leader in Gartner's Magic Quadrant for cloud and AI services.
Accenture remains a high-quality compounder with 10%+ EPS growth potential, driven by digital transformation tailwinds and disciplined capital allocation ($6.3B returned via buybacks/dividends in 2023). Near-term risks include IT spending cyclicality, but its consulting-led model provides visibility into pipeline conversion. Valuation at 25x FY24E P/E is justified by ROIC (30%) and AI leadership. Preferred play on enterprise tech adoption.
FY23 Annual Report, Gartner Market Share Analysis, IDC Spending Guides, Company Investor Presentations
Historical valuation data is not available at this time.