In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.

Intrinsic Stock Value (Valuation Summary)
Weighted Average Cost of Capital (WACC)
FCFF Growth Rate (g)

Accenture PLC, free cash flow to the firm (FCFF) forecast

US$ in thousands, except per share data

Year	Value	FCFF_t or Terminal value (TV_t)	Calculation	Present value at 19.69%
0¹	FCFF₀	10,992,952
1	FCFF₁	12,755,261	= 10,992,952 × (1 + 16.03%)	10,657,098
2	FCFF₂	14,584,417	= 12,755,261 × (1 + 14.34%)	10,180,950
3	FCFF₃	16,429,281	= 14,584,417 × (1 + 12.65%)	9,582,247
4	FCFF₄	18,229,717	= 16,429,281 × (1 + 10.96%)	8,883,382
5	FCFF₅	19,919,218	= 18,229,717 × (1 + 9.27%)	8,109,989
5	Terminal value (TV₅)	208,878,059	= 19,919,218 × (1 + 9.27%) ÷ (19.69% – 9.27%)	85,043,440
Intrinsic value of Accenture PLC capital				132,457,105
Less: Debt and bank borrowings (fair value)				5,181,427
Intrinsic value of Accenture PLC common stock				127,275,678

Intrinsic value of Accenture PLC common stock (per share)				$207.88
Current share price				$179.82

Based on: 10-K (reporting date: 2025-08-31).

¹ See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Accenture PLC, cost of capital

	Value¹	Weight	Required rate of return²	Calculation
Equity (fair value)	110,093,497	0.96	20.46%
Debt and bank borrowings (fair value)	5,181,427	0.04	3.22%	= 4.21% × (1 – 23.62%)

Based on: 10-K (reporting date: 2025-08-31).

¹ US$ in thousands

Equity (fair value) = No. shares of common stock outstanding × Current share price
= 612,242,782 × $179.82
= $110,093,497,059.24

Debt and bank borrowings (fair value). See details »

² Required rate of return on equity is estimated by using CAPM. See details »

Required rate of return on debt. See details »

Required rate of return on debt is after tax.

Estimated (average) effective income tax rate
= (23.70% + 23.50% + 23.40% + 24.00% + 22.80% + 23.50%) ÷ 6
= 23.62%

WACC = 19.69%

FCFF growth rate (g) implied by PRAT model

Accenture PLC, PRAT model

	Average	Aug 31, 2025	Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Selected Financial Data (US$ in thousands)
Interest expense		228,555)	58,969)	47,525)	47,320)	59,492)	33,071)
Net income attributable to Accenture plc		7,678,433)	7,264,787)	6,871,557)	6,877,169)	5,906,809)	5,107,839)

Effective income tax rate (EITR)¹		23.70%	23.50%	23.40%	24.00%	22.80%	23.50%

Interest expense, after tax²		174,387)	45,111)	36,404)	35,963)	45,928)	25,299)
Add: Dividends		3,696,677)	3,238,259)	2,824,435)	2,454,684)	2,233,624)	2,035,198)
Interest expense (after tax) and dividends		3,871,064)	3,283,370)	2,860,839)	2,490,647)	2,279,552)	2,060,497)

EBIT(1 – EITR)³		7,852,820)	7,309,898)	6,907,961)	6,913,132)	5,952,737)	5,133,138)

Current portion of long-term debt and bank borrowings		114,484)	946,229)	104,810)	9,175)	12,080)	7,820)
Long-term debt, excluding current portion		5,034,169)	78,628)	43,093)	45,893)	53,473)	54,052)
Total Accenture plc shareholders’ equity		31,195,446)	28,288,646)	25,692,839)	22,106,097)	19,529,454)	17,000,536)
Total capital		36,344,099)	29,313,503)	25,840,742)	22,161,165)	19,595,007)	17,062,408)
Financial Ratios
Retention rate (RR)⁴		0.51	0.55	0.59	0.64	0.62	0.60
Return on invested capital (ROIC)⁵		21.61%	24.94%	26.73%	31.19%	30.38%	30.08%
Averages
RR	0.58
ROIC	27.49%

FCFF growth rate (g)⁶	16.03%

Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31).

¹ See details »

2025 Calculations

² Interest expense, after tax = Interest expense × (1 – EITR)
= 228,555 × (1 – 23.70%)
= 174,387

³ EBIT(1 – EITR) = Net income attributable to Accenture plc + Interest expense, after tax
= 7,678,433 + 174,387
= 7,852,820

⁴ RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [7,852,820 – 3,871,064] ÷ 7,852,820
= 0.51

⁵ ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × 7,852,820 ÷ 36,344,099
= 21.61%

⁶ g = RR × ROIC
= 0.58 × 27.49%
= 16.03%

FCFF growth rate (g) implied by single-stage model

g = 100 × (Total capital, fair value₀ × WACC – FCFF₀) ÷ (Total capital, fair value₀ + FCFF₀)
= 100 × (115,274,924 × 19.69% – 10,992,952) ÷ (115,274,924 + 10,992,952)
= 9.27%

where:

Total capital, fair value₀ = current fair value of Accenture PLC debt and equity (US$ in thousands)
FCFF₀ = the last year Accenture PLC free cash flow to the firm (US$ in thousands)
WACC = weighted average cost of Accenture PLC capital

FCFF growth rate (g) forecast

Accenture PLC, H-model

Year	Value	g_t
1	g₁	16.03%
2	g₂	14.34%
3	g₃	12.65%
4	g₄	10.96%
5 and thereafter	g₅	9.27%

where:
g₁ is implied by PRAT model
g₅ is implied by single-stage model
g₂, g₃ and g₄ are calculated using linear interpolation between g₁ and g₅

Calculations

g₂ = g₁ + (g₅ – g₁) × (2 – 1) ÷ (5 – 1)
= 16.03% + (9.27% – 16.03%) × (2 – 1) ÷ (5 – 1)
= 14.34%

g₃ = g₁ + (g₅ – g₁) × (3 – 1) ÷ (5 – 1)
= 16.03% + (9.27% – 16.03%) × (3 – 1) ÷ (5 – 1)
= 12.65%

g₄ = g₁ + (g₅ – g₁) × (4 – 1) ÷ (5 – 1)
= 16.03% + (9.27% – 16.03%) × (4 – 1) ÷ (5 – 1)
= 10.96%

Accenture PLC (NYSE:ACN)

Present Value of Free Cash Flow to the Firm (FCFF)

Intrinsic Stock Value (Valuation Summary)

Weighted Average Cost of Capital (WACC)

FCFF Growth Rate (g)

FCFF growth rate (g) implied by PRAT model

FCFF growth rate (g) implied by single-stage model

FCFF growth rate (g) forecast