ACN - Embedded Expectations Analysis - 2020 02 05
ï€ Accenture plc (ACN:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 20.5x Uniform P/E. Even at these levels, markets are still pricing in bearish expectations for the firm, but management is confident about their growth, business strategy, and acquisitionsï€ Specifically, management is confident that they delivered margin expansion while investing in their people and business, and they are confident that they had double-digit growth in Italy, Germany, and Ireland and high single-digit growth in France. Moreover, they are confident that their business model allows them to execute, scale, and bring unique consulting services together, and they are confident that their KC acquisition gives the firm skills that they can leverage across the world. Furthermore, they are confident that their major markets are home to more than 85% of their Diamond clients, Accenture Interactive growth came from a mix of organic and inorganic sources, and that they are seeing an inflection in the marketplace moving to enterprise wide transformation multiyear programs. In addition, they are confident that they acquired connected, product-focused companies such as Mindtribe and Pillar, and they are focused on fulfilling client needs in their Strategy and Consulting business, and that their CRM Platform supported a client's zero carbon transition strategy
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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