ACN – Markets expectations are for Uniform ROA to reach new highs, but management is confident about growth and their capabilities

• Accenture (ACN) currently trades at a historical high relative to Uniform earnings, with a 27.2x Uniform P/E (Fwd. V/E’).
• At these levels, markets are pricing in expectations for Uniform ROA to reach a record high of 64% in 2026, accompanied by 5% Uniform asset growth.
• However, analysts expect Uniform ROA to compress to 53% in 2023, accompanied by 11% Uniform asset growth.
• If sustained going forward, these levels would imply a stock price closer to $389, representing approximately 3% equity downside for the firm.
• That said, the firm’s most recent earnings call suggests management is confident about growth and their capabilities.