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Accenture PLC (NYSE:ACN)
Intrinsic Value (DCF Projected)
$66.12 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today, Accenture PLC's DCF projected intrinsic value is $66.12. The stock price of Accenture PLC is $80.87. Therefore, Accenture PLC's Price to Intrinsic Value (DCF Projected) Ratio of today is 1.2.

ACN' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0.71   Max: 1.85
Current: 1.2

0.71
1.85

During the past 13 years, the highest Price to Intrinsic Value (DCF Projected) Ratio of Accenture PLC was 1.85. The lowest was 0.71. And the median was 1.07.

ACN's Price to Intrinsic Value (DCF Projected) is ranked higher than
88% of the 1830 Companies
in the Global Information Technology Services industry.

( Industry Median: 9999.00 vs. ACN: 1.20 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here Accenture PLC's FCF(6 year avg) is calculate as

Accenture PLC Quarterly Data

201202201205201208201211201302201305201308201311201402201405
total_freecashflow 7721,1251,593-1955441,4121,1731222161,278
200908200911201002201005201008201011201102201105201108201111
total_freecashflow 9711846169031,150315231,2401,244394
200808200811200902200905
total_freecashflow 944396578971

Add all the Free Cash Flow together and divide 6 will get Accenture PLC's FCF(6 year avg) = $3,031.17.

Accenture PLC's DCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(May14)*0.8)/Shares Outstanding
=(13.5958910426*3031.166+5603.631*0.8)/691.038
=66.12

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.

Accenture PLC's Price to DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=80.87/66.1241602747
=1.22

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Accenture PLC Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
iv_dcf_share 0.000.000.0030.5237.6044.4950.2356.8657.3961.16

Accenture PLC Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
iv_dcf_share 54.4655.9557.3957.4157.9459.3661.1663.2262.3166.12
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