ACN - Embedded Expectations Analysis - 2021 10 15
Accenture plc (ACN:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 28.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident about their cloud migration, client solutions, and bookings guidance.Specifically, management is confident their managed security services are providing much-needed protection and talent for clients, and that they are helping clients transform their digital content capabilities with state-of-the-art marketing operations. Furthermore, they are confident revenues grew by 11% in local currency for the full year and that their revenue guidance range implies strong organic bookings growth in the second half. Finally, they are confident they are replacing or migrating legacy applications to the cloud in their Kubota partnership and that they will return at least $6.3 billion to shareholders through dividends and share repurchases.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
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