ACN – Market expectations are for Uniform ROA to remain stable, and management is confident about sustainability and new bookings
- Accenture (ACN) currently trades near corporate yet above historical averages relative to Uniform earnings, with a 23.0x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to remain stable at 55% levels through 2026, accompanied by 5% Uniform asset growth.
- However, analysts expect Uniform ROA to compress to 53% in 2023, accompanied by 13% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $425, representing approximately 25% equity upside for the firm.
- Moreover, the firm’s most recent earnings call suggests management is confident about sustainability and new bookings.