Accenture: Calling It A Day Here (Downgrade)


  • I find it challenging to recommend Accenture plc given its high valuation and recent downward revision of growth prospects.
  • 20x forward free cash flow raises questions about the justification for paying such a premium.
  • Despite its solid balance sheet and cash flow generation, uncertainties surrounding Accenture’s growth trajectory and valuation warrant caution.

Businessman leading discussion during meeting

Thomas Barwick/DigitalVision via Getty Images

Investment Thesis

Accenture plc (NYSE:ACN) specializes in consulting services. And its stock is priced at 20x forward free cash flow. A multiple that is expensive for what Accenture offers investors.

And to compound matters, the

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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