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US Equities · Finance research note

ACN — Accenture

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 13.82%
Profit Margins 10.61%
Return on Equity 24.76%
Return on Assets 11.16%
Free Float 0.61B
Dividend Yield 5.18%
Short Int % Utilisation 4.7%

2.2 Growth

Metric Value
Revenue Growth 8.3%
Free Cash Flow 12.16B
EBITDA 8.26 (Ratio)
Enterprise Value 105.18B
EV/Revenue 1.46
EV/EBITDA 8.26

Revenue growth of 8.3% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -19.73%
Risk / Std Dev (Ann.)* 43.43%
1-Year Price Return* -26.91%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $176.89
52-Week Range $118.15 – $291.09
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $69.67B $64.90B
Net income Reported net income $7.68B $7.26B
Total assets Year-end reported balance $65.39B $55.93B
Shareholders’ equity Year-end reported balance $31.20B $28.29B
Net margin Net income ÷ revenue 11.02% 11.19%
Asset turnover Revenue ÷ total assets 1.0654x 1.1603x
Equity multiplier Total assets ÷ shareholders’ equity 2.0963x 1.9772x
ROE Net margin × asset turnover × equity multiplier 24.61% 25.68%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $69.67B
Prior annual revenue $64.90B
EBIT $10.84B
Tax rate 23.74%
NOPAT = EBIT × (1 − tax rate) $8.27B
Forecast start-growth basis 7.36%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $8.27B
Add: depreciation & amortisation $1.37B
Less: capital expenditure -$600.04M
Less/(add): working-capital cash-flow movement -$1.05B
Current unlevered FCFF $7.99B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 7.36% $8.88B $1.47B -$644.20M -$1.13B $8.57B $8.17B
2 6.15% $9.42B $1.56B -$902.69M -$1.20B $8.88B $7.69B
3 4.93% $9.89B $1.64B -$1.18B -$1.26B $9.09B $7.15B
4 3.72% $10.25B $1.70B -$1.46B -$1.30B $9.19B $6.57B
5 2.50% $10.51B $1.74B -$1.74B -$1.34B $9.17B $5.96B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.07
Cost of equity 10.62%
Pre-tax cost of debt 3.72%
WACC 10.07%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $124.21B
Implied terminal EV / EBITDA 8.00x
Terminal value as % of enterprise value 68.39%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $35.54B
Present value of terminal value $76.88B
Indicated enterprise value $112.42B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $112.42B
Less: gross interest-bearing debt $8.18B
Add: cash and equivalents $11.48B
Add: affiliate investments $0.00
Less: minority interests $1.05B
Indicated common equity value $114.67B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 632,435,108.00
Share-count basis reported diluted weighted-average shares
Current market price $176.47
DCF indicative value per share $181.32
Indicative value vs. market price 2.75%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:20:38.796061 UTC; latest reported fiscal period: 2025-08-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -56.27% -48.83%
Adjusted R² 0.04 0.06
Annualised residual volatility 40.92% 40.16%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.21 (0.87) 0.56 (2.07)
Size (SMB) 0.86 (2.66) 0.76 (2.20)
Value (HML) -0.14 (-0.49) -0.63 (-1.87)
Profitability (RMW) NM 0.46 (1.58)
Investment (CMA) NM 0.98 (1.97)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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