Thinking about Accenture stock and wondering whether it’s a buy, hold, or sell? You’re not alone. The company’s recent price action has caught the attention of investors who want to know if now is the time to make a move. Just this week, shares rose 3.5%, building on a solid 4.9% gain over the past month. Yet, when you zoom out, Accenture is still down almost 28% year-to-date, and the one-year return comes in at –29.1%. Surprisingly, over a five-year stretch, the story is much brighter, with shares still up 23.2% from where they started. Clearly, this stock is no stranger to twists and turns.
These changing fortunes have not happened in a vacuum. Recent headlines have highlighted Accenture’s ongoing push into artificial intelligence and cloud services, as well as the company’s strategic acquisitions in niche IT consulting firms worldwide. This pivot is helping the company adapt to evolving tech needs and may account for the improving sentiment in recent weeks, even as broader market uncertainties have weighed on many other tech-related stocks.
So, what about Accenture’s valuation? By our numbers, the stock earns a value score of 4 out of a possible 6. That means Accenture stacks up as undervalued across four different criteria, which is a promising sign but not quite a slam dunk. To really get to the bottom of whether shares are attractive today, it is time to take a closer look at the major valuation methods used by analysts. If you are looking for that truly superior way to judge value, do not skip the end of the article.
Why Accenture is lagging behind its peers
Approach 1: Accenture Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow (DCF) model helps estimate what a company is worth by forecasting its future cash flows and discounting them back to their present value. This approach is widely used by analysts to get an intrinsic value that is less impacted by short-term market swings.
For Accenture, the latest trailing twelve months Free Cash Flow stands at $10.9 billion. Analyst forecasts suggest this figure will steadily rise, reaching about $12.4 billion by 2029. Ten-year projections provided by Simply Wall St extrapolate continued growth, eventually reaching $14.7 billion in Free Cash Flow by 2035. These values reflect Accenture’s position in the market and anticipated expansion as it focuses on AI and cloud consulting.
Based on this two-stage DCF model, Accenture’s intrinsic value is estimated at $274.19 per share. This is about an 8.5% discount compared to the current share price, suggesting there is not a wide gap between price and value at this time. While not a deep bargain, this signals the stock is trading near its fair value according to cash flow fundamentals.
Result: ABOUT RIGHT
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Accenture.
ACN Discounted Cash Flow as at Oct 2025
Simply Wall St performs a valuation analysis on every stock in the world every day (check out Accenture’s valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.
Approach 2: Accenture Price vs Earnings
The Price-to-Earnings (PE) ratio is a widely used valuation metric for profitable companies like Accenture, as it directly connects a company’s earnings potential with what investors are willing to pay for each dollar of profit. This method is particularly effective when evaluating mature businesses with reliable profits.
A company’s “normal” or “fair” PE ratio depends on expectations for future growth and perceived risks. Generally, a higher growth outlook or lower risk profile justifies a higher PE, while slower growth or elevated risks warrant a lower multiple.
Currently, Accenture trades at a PE ratio of 20.3x. This is noticeably below both the IT industry average of 30.1x and the peer group average of 24.8x. This signals a relative discount based on traditional metrics. However, these comparisons can sometimes miss the nuances that actually drive long-term value.
Simply Wall St’s “Fair Ratio” is a proprietary measure that sets expectations for a company’s PE ratio by considering precise factors such as earnings growth, industry, margin profile, market cap, and unique risks. Unlike basic peer or industry comparisons, the Fair Ratio goes further to determine what is truly reasonable for Accenture’s circumstances. For Accenture, the Fair Ratio stands at 38.3x, significantly above the current PE.
Given the Fair Ratio and the actual PE ratio, Accenture’s shares look undervalued by this measure because the current valuation is well below what would be justified based on its growth and risk profile.
Result: UNDERVALUED
NYSE:ACN PE Ratio as at Oct 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your Accenture Narrative
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is simply your story—your perspective on Accenture’s future—that links big-picture ideas and real-world expectations to a specific financial forecast and fair value estimate. Narratives take the guesswork out of investing by letting you combine what you believe about Accenture’s revenue growth, profit margins, and risks with the numbers themselves. This creates a clear and easy-to-follow path from company outlook, to financial projection, to buy or sell decision.
Anyone can craft their own Narrative or browse those created by other investors directly on Simply Wall St’s Community page, a feature trusted by millions. Narratives automatically update as fresh news, earnings, or market events unfold, so your viewpoint can evolve over time. For example, one investor’s Narrative for Accenture might forecast revenue growth of 5% and a profit margin above 12%, supporting a bullish fair value near $372 per share. Another, seeing greater risks ahead, may assume slower growth and tighter margins, landing on a bearish fair value of about $202. Narratives empower you to cut through the noise, sense-check analyst estimates, and make smart, customized investment choices.
For Accenture, we’ll make it really easy for you with previews of two leading Accenture Narratives:
- 🐂 Accenture Bull Case
Fair value: $278.32
Undervalued by: 9.9%
Expected revenue growth: 5.82%
- Strategic investments in Gen AI and Industry X, along with ongoing acquisitions, are expected to boost future revenue and consolidate Accenture’s market position.
- The company maintains strong cash flow and shareholder returns via buybacks. Analysts forecast rising margins and earnings by 2028.
- Main risks include slowing federal revenue, global economic uncertainty, margin pressure, currency fluctuations, and competitive pricing.
- 🐻 Accenture Bear Case
Fair value: $202.38
Overvalued by: 23.9%
Expected revenue growth: 5.44%
- Accenture trades at a valuation near its historical averages, with strong profitability and healthy free cash flow supporting dividends and buybacks.
- EPS growth and margin expansion remain positive. However, booking momentum and consulting demand are in question after multiple quarters of declines.
- Key risks to watch are continued weakness in bookings, potential delays in revenue, currency impacts, and execution on large AI and cloud contracts.
Whether you side with the bull, bear, or want to see even more perspectives, you can review the complete Narrative collection and supporting data to reach your own view on Accenture’s long-term investment case.
Do you think there’s more to the story for Accenture? Create your own Narrative to let the Community know!
NYSE:ACN Community Fair Values as at Oct 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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