Intrinsic value of Accenture plc - ACN

Previous Close

$191.48

  Intrinsic Value

$83.88

stock screener

  Rating & Target

str. sell

-56%

Previous close

$191.48

 
Intrinsic value

$83.88

 
Up/down potential

-56%

 
Rating

str. sell

We calculate the intrinsic value of ACN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 122.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.30
  7.07
  6.86
  6.68
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.35
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.17
  5.15
  5.13
  5.12
  5.11
Revenue, $m
  44,640
  47,796
  51,076
  54,487
  58,033
  61,723
  65,563
  69,563
  73,730
  78,073
  82,603
  87,329
  92,263
  97,416
  102,799
  108,426
  114,309
  120,463
  126,902
  133,641
  140,697
  148,086
  155,826
  163,935
  172,432
  181,339
  190,675
  200,464
  210,728
  221,493
Variable operating expenses, $m
  33,441
  35,767
  38,185
  40,698
  43,312
  46,032
  48,863
  51,810
  54,882
  58,083
  60,883
  64,367
  68,004
  71,801
  75,769
  79,916
  84,253
  88,789
  93,535
  98,502
  103,702
  109,149
  114,853
  120,830
  127,093
  133,658
  140,539
  147,754
  155,320
  163,254
Fixed operating expenses, $m
  4,750
  4,855
  4,962
  5,071
  5,182
  5,296
  5,413
  5,532
  5,654
  5,778
  5,905
  6,035
  6,168
  6,303
  6,442
  6,584
  6,729
  6,877
  7,028
  7,183
  7,341
  7,502
  7,667
  7,836
  8,008
  8,184
  8,365
  8,549
  8,737
  8,929
Total operating expenses, $m
  38,191
  40,622
  43,147
  45,769
  48,494
  51,328
  54,276
  57,342
  60,536
  63,861
  66,788
  70,402
  74,172
  78,104
  82,211
  86,500
  90,982
  95,666
  100,563
  105,685
  111,043
  116,651
  122,520
  128,666
  135,101
  141,842
  148,904
  156,303
  164,057
  172,183
Operating income, $m
  6,449
  7,174
  7,930
  8,718
  9,539
  10,395
  11,288
  12,221
  13,195
  14,212
  15,814
  16,927
  18,092
  19,311
  20,588
  21,926
  23,328
  24,798
  26,339
  27,957
  29,654
  31,435
  33,306
  35,269
  37,331
  39,497
  41,771
  44,161
  46,672
  49,310
EBITDA, $m
  7,576
  8,343
  9,142
  9,975
  10,842
  11,747
  12,691
  13,676
  14,705
  15,780
  16,904
  18,079
  19,309
  20,596
  21,943
  23,355
  24,835
  26,386
  28,013
  29,719
  31,510
  33,389
  35,361
  37,431
  39,605
  41,888
  44,286
  46,805
  49,451
  52,232
Interest expense (income), $m
  16
  20
  817
  1,651
  2,516
  3,417
  4,353
  5,327
  6,341
  7,396
  8,496
  9,643
  10,839
  12,086
  13,389
  14,749
  16,170
  17,655
  19,208
  20,833
  22,532
  24,311
  26,174
  28,124
  30,167
  32,308
  34,551
  36,902
  39,367
  41,951
  44,660
Earnings before tax, $m
  6,430
  6,357
  6,280
  6,201
  6,122
  6,042
  5,961
  5,880
  5,798
  5,716
  6,172
  6,089
  6,006
  5,922
  5,839
  5,756
  5,673
  5,590
  5,507
  5,425
  5,343
  5,262
  5,181
  5,102
  5,023
  4,946
  4,869
  4,795
  4,722
  4,650
Tax expense, $m
  1,736
  1,716
  1,695
  1,674
  1,653
  1,631
  1,610
  1,588
  1,566
  1,543
  1,666
  1,644
  1,622
  1,599
  1,577
  1,554
  1,532
  1,509
  1,487
  1,465
  1,443
  1,421
  1,399
  1,377
  1,356
  1,335
  1,315
  1,295
  1,275
  1,256
Net income, $m
  4,694
  4,641
  4,584
  4,527
  4,469
  4,411
  4,352
  4,292
  4,233
  4,173
  4,505
  4,445
  4,384
  4,323
  4,262
  4,202
  4,141
  4,080
  4,020
  3,960
  3,900
  3,841
  3,782
  3,724
  3,667
  3,610
  3,555
  3,500
  3,447
  3,395

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  26,228
  28,082
  30,010
  32,013
  34,097
  36,265
  38,521
  40,871
  43,319
  45,871
  48,533
  51,310
  54,209
  57,236
  60,399
  63,705
  67,162
  70,777
  74,561
  78,520
  82,666
  87,007
  91,555
  96,319
  101,312
  106,544
  112,030
  117,781
  123,812
  130,137
Adjusted assets (=assets-cash), $m
  26,228
  28,082
  30,010
  32,013
  34,097
  36,265
  38,521
  40,871
  43,319
  45,871
  48,533
  51,310
  54,209
  57,236
  60,399
  63,705
  67,162
  70,777
  74,561
  78,520
  82,666
  87,007
  91,555
  96,319
  101,312
  106,544
  112,030
  117,781
  123,812
  130,137
Revenue / Adjusted assets
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
  1.702
Average production assets, $m
  4,062
  4,349
  4,648
  4,958
  5,281
  5,617
  5,966
  6,330
  6,709
  7,105
  7,517
  7,947
  8,396
  8,865
  9,355
  9,867
  10,402
  10,962
  11,548
  12,161
  12,803
  13,476
  14,180
  14,918
  15,691
  16,502
  17,351
  18,242
  19,176
  20,156
Working capital, $m
  -1,741
  -1,864
  -1,992
  -2,125
  -2,263
  -2,407
  -2,557
  -2,713
  -2,875
  -3,045
  -3,222
  -3,406
  -3,598
  -3,799
  -4,009
  -4,229
  -4,458
  -4,698
  -4,949
  -5,212
  -5,487
  -5,775
  -6,077
  -6,393
  -6,725
  -7,072
  -7,436
  -7,818
  -8,218
  -8,638
Total debt, $m
  1,048
  2,116
  3,226
  4,380
  5,581
  6,829
  8,129
  9,483
  10,893
  12,363
  13,896
  15,495
  17,165
  18,909
  20,730
  22,635
  24,626
  26,708
  28,888
  31,168
  33,556
  36,057
  38,676
  41,420
  44,296
  47,310
  50,470
  53,783
  57,257
  60,900
Total liabilities, $m
  15,107
  16,175
  17,286
  18,440
  19,640
  20,889
  22,188
  23,542
  24,952
  26,422
  27,955
  29,554
  31,224
  32,968
  34,790
  36,694
  38,685
  40,768
  42,947
  45,228
  47,616
  50,116
  52,735
  55,480
  58,355
  61,370
  64,529
  67,842
  71,316
  74,959
Total equity, $m
  11,121
  11,907
  12,724
  13,574
  14,457
  15,376
  16,333
  17,329
  18,367
  19,450
  20,578
  21,755
  22,984
  24,268
  25,609
  27,011
  28,477
  30,010
  31,614
  33,293
  35,050
  36,891
  38,819
  40,839
  42,956
  45,175
  47,501
  49,939
  52,496
  55,178
Total liabilities and equity, $m
  26,228
  28,082
  30,010
  32,014
  34,097
  36,265
  38,521
  40,871
  43,319
  45,872
  48,533
  51,309
  54,208
  57,236
  60,399
  63,705
  67,162
  70,778
  74,561
  78,521
  82,666
  87,007
  91,554
  96,319
  101,311
  106,545
  112,030
  117,781
  123,812
  130,137
Debt-to-equity ratio
  0.090
  0.180
  0.250
  0.320
  0.390
  0.440
  0.500
  0.550
  0.590
  0.640
  0.680
  0.710
  0.750
  0.780
  0.810
  0.840
  0.860
  0.890
  0.910
  0.940
  0.960
  0.980
  1.000
  1.010
  1.030
  1.050
  1.060
  1.080
  1.090
  1.100
Adjusted equity ratio
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424
  0.424

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,694
  4,641
  4,584
  4,527
  4,469
  4,411
  4,352
  4,292
  4,233
  4,173
  4,505
  4,445
  4,384
  4,323
  4,262
  4,202
  4,141
  4,080
  4,020
  3,960
  3,900
  3,841
  3,782
  3,724
  3,667
  3,610
  3,555
  3,500
  3,447
  3,395
Depreciation, amort., depletion, $m
  1,127
  1,169
  1,212
  1,257
  1,304
  1,352
  1,403
  1,456
  1,511
  1,568
  1,089
  1,152
  1,217
  1,285
  1,356
  1,430
  1,508
  1,589
  1,674
  1,763
  1,856
  1,953
  2,055
  2,162
  2,274
  2,392
  2,515
  2,644
  2,779
  2,921
Funds from operations, $m
  5,821
  5,809
  5,796
  5,784
  5,773
  5,763
  5,755
  5,748
  5,743
  5,741
  5,595
  5,596
  5,601
  5,608
  5,618
  5,632
  5,649
  5,669
  5,694
  5,722
  5,756
  5,794
  5,837
  5,886
  5,941
  6,002
  6,069
  6,144
  6,226
  6,316
Change in working capital, $m
  -118
  -123
  -128
  -133
  -138
  -144
  -150
  -156
  -163
  -169
  -177
  -184
  -192
  -201
  -210
  -219
  -229
  -240
  -251
  -263
  -275
  -288
  -302
  -316
  -331
  -347
  -364
  -382
  -400
  -420
Cash from operations, $m
  5,939
  5,932
  5,924
  5,917
  5,911
  5,907
  5,904
  5,904
  5,906
  5,910
  5,771
  5,781
  5,793
  5,809
  5,828
  5,851
  5,878
  5,909
  5,945
  5,985
  6,031
  6,082
  6,139
  6,202
  6,272
  6,349
  6,433
  6,526
  6,626
  6,736
Maintenance CAPEX, $m
  -551
  -589
  -630
  -674
  -719
  -765
  -814
  -865
  -917
  -972
  -1,030
  -1,089
  -1,152
  -1,217
  -1,285
  -1,356
  -1,430
  -1,508
  -1,589
  -1,674
  -1,763
  -1,856
  -1,953
  -2,055
  -2,162
  -2,274
  -2,392
  -2,515
  -2,644
  -2,779
New CAPEX, $m
  -264
  -287
  -299
  -310
  -323
  -336
  -349
  -364
  -379
  -395
  -412
  -430
  -449
  -469
  -490
  -512
  -535
  -560
  -586
  -613
  -642
  -672
  -704
  -738
  -773
  -810
  -850
  -891
  -934
  -980
Cash from investing activities, $m
  -815
  -876
  -929
  -984
  -1,042
  -1,101
  -1,163
  -1,229
  -1,296
  -1,367
  -1,442
  -1,519
  -1,601
  -1,686
  -1,775
  -1,868
  -1,965
  -2,068
  -2,175
  -2,287
  -2,405
  -2,528
  -2,657
  -2,793
  -2,935
  -3,084
  -3,242
  -3,406
  -3,578
  -3,759
Free cash flow, $m
  5,125
  5,056
  4,995
  4,933
  4,870
  4,806
  4,741
  4,675
  4,609
  4,542
  4,329
  4,261
  4,193
  4,123
  4,054
  3,983
  3,913
  3,842
  3,770
  3,698
  3,626
  3,554
  3,482
  3,409
  3,337
  3,265
  3,192
  3,120
  3,048
  2,977
Issuance/(repayment) of debt, $m
  1,023
  1,068
  1,110
  1,154
  1,200
  1,249
  1,300
  1,354
  1,410
  1,470
  1,533
  1,600
  1,670
  1,744
  1,822
  1,904
  1,991
  2,083
  2,179
  2,281
  2,388
  2,501
  2,619
  2,744
  2,876
  3,014
  3,160
  3,313
  3,474
  3,643
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,023
  1,068
  1,110
  1,154
  1,200
  1,249
  1,300
  1,354
  1,410
  1,470
  1,533
  1,600
  1,670
  1,744
  1,822
  1,904
  1,991
  2,083
  2,179
  2,281
  2,388
  2,501
  2,619
  2,744
  2,876
  3,014
  3,160
  3,313
  3,474
  3,643
Total cash flow (excl. dividends), $m
  6,148
  6,124
  6,105
  6,087
  6,070
  6,054
  6,041
  6,029
  6,019
  6,012
  5,862
  5,861
  5,862
  5,867
  5,875
  5,888
  5,904
  5,924
  5,949
  5,979
  6,014
  6,055
  6,101
  6,154
  6,213
  6,279
  6,352
  6,433
  6,522
  6,620
Retained Cash Flow (-), $m
  -756
  -786
  -817
  -850
  -884
  -919
  -957
  -996
  -1,038
  -1,082
  -1,128
  -1,177
  -1,229
  -1,284
  -1,341
  -1,402
  -1,466
  -1,533
  -1,604
  -1,679
  -1,758
  -1,841
  -1,928
  -2,020
  -2,117
  -2,219
  -2,326
  -2,439
  -2,557
  -2,682
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  5,392
  5,338
  5,288
  5,237
  5,186
  5,135
  5,084
  5,033
  4,981
  4,930
  4,734
  4,683
  4,633
  4,583
  4,534
  4,486
  4,438
  4,391
  4,345
  4,300
  4,257
  4,214
  4,173
  4,134
  4,096
  4,060
  4,026
  3,994
  3,965
  3,938
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  5,170
  4,887
  4,602
  4,312
  4,020
  3,727
  3,435
  3,146
  2,862
  2,585
  2,248
  1,999
  1,762
  1,539
  1,331
  1,140
  966
  809
  669
  546
  440
  350
  274
  211
  159
  118
  86
  62
  43
  30
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Accenture plc is a professional services company serving clients in various industries and in geographic regions, including North America, Europe and Growth Markets. The Company provides management and technology consulting services. Its segments include Communications, Media and Technology; Financial Services; Health and Public Service; Products, and Resources. The Communications, Media & Technology segment serves communications, electronics, technology, media and entertainment industries. The Financial Services segment serves banking, capital markets and insurance industries. The Health & Public service segment serves healthcare payers and providers, and government departments and agencies, public service organizations, educational institutions and non-profit organizations. The Products segment serves a set of interconnected consumer-relevant industries. The Resources segment serves chemicals, energy, forest products, metals and mining, utilities and related industries.

FINANCIAL RATIOS  of  Accenture plc (ACN)

Valuation Ratios
P/E Ratio 35.4
Price to Sales 3.3
Price to Book 13.6
Price to Tangible Book
Price to Cash Flow 24.5
Price to Free Cash Flow 27.3
Growth Rates
Sales Growth Rate 5.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 3.8%
Cap. Spend. - 3 Yr. Gr. Rate 9.9%
Financial Strength
Quick Ratio 1377
Current Ratio 0.1
LT Debt to Equity 0.2%
Total Debt to Equity 0.3%
Interest Coverage 290
Management Effectiveness
Return On Assets 16%
Ret/ On Assets - 3 Yr. Avg. 18.1%
Return On Total Capital 41.6%
Ret/ On T. Cap. - 3 Yr. Avg. 50.9%
Return On Equity 41.7%
Return On Equity - 3 Yr. Avg. 51.1%
Asset Turnover 1.7
Profitability Ratios
Gross Margin 30%
Gross Margin - 3 Yr. Avg. 29.8%
EBITDA Margin 14.8%
EBITDA Margin - 3 Yr. Avg. 16.1%
Operating Margin 12.6%
Oper. Margin - 3 Yr. Avg. 14.1%
Pre-Tax Margin 12.6%
Pre-Tax Margin - 3 Yr. Avg. 14%
Net Profit Margin 9.4%
Net Profit Margin - 3 Yr. Avg. 10.2%
Effective Tax Rate 21.3%
Eff/ Tax Rate - 3 Yr. Avg. 23.1%
Payout Ratio 45.5%

ACN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ACN stock intrinsic value calculation we used $41603 million for the last fiscal year's total revenue generated by Accenture plc. The default revenue input number comes from 0001 income statement of Accenture plc. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ACN stock valuation model: a) initial revenue growth rate of 7.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ACN is calculated based on our internal credit rating of Accenture plc, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Accenture plc.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ACN stock the variable cost ratio is equal to 75%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $4648 million in the base year in the intrinsic value calculation for ACN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 78% for Accenture plc.

Corporate tax rate of 27% is the nominal tax rate for Accenture plc. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ACN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ACN are equal to 9.1%.

Life of production assets of 6.9 years is the average useful life of capital assets used in Accenture plc operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ACN is equal to -3.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10364.753 million for Accenture plc - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 638.740 million for Accenture plc is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Accenture plc at the current share price and the inputted number of shares is $122.3 billion.

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