Based on the provided financial data and recent market analysis, here's a concise assessment of ACN's valuation:
Valuation Analysis
ACN currently trades at a PE ratio of 30.37x, which is moderately high compared to its historical average. The EV/EBITDA of 20.57x also suggests premium valuation levels.
Financial Performance
Revenue growth remains solid with Q1 2025 showing $17.69B, up 7.8% from previous quarter. Net income reached $2.28B in Q1 2025, demonstrating strong profitability improvement. Gross margins have stabilized around 32-33%, indicating pricing power.
Growth & Efficiency
- ROE improved to 27.1% in Q1 2025
- Net margin expanded to 13.09%, showing operational efficiency
- Current ratio of 1.47 indicates healthy liquidity
Market Sentiment
According to recent analysis, ACN received a 77% rating from Validea's Growth Investor model, highlighting its accelerating earnings, reasonable valuations and low debt levels. However, indicates the stock's intrinsic value calculated through DCF model is $254.18, suggesting current price levels around $349 represent a -37.36% premium to fair value.
Conclusion
At current levels, ACN appears overvalued based on:
- Premium valuation multiples vs historical averages
- Trading significantly above DCF-based intrinsic value
- High PE ratio relative to expected growth rates
While ACN demonstrates strong operational execution and financial health, the current valuation leaves limited upside potential and suggests elevated downside risk.