ACN - Embedded Expectations Analysis - 2020 10 26
Accenture plc (ACN:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 21.5x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their digital capabilities, bookings, and margin expansionSpecifically, management is confident in their strategic agreement with Halliburton and Microsoft, that they will transform their global client's IT infrastructure to provide digital experiences, and that post-coronavirus leadership requires businesses to become cloud-first businesses. In addition, they are confident in the sustainability of Public Service, Software & Platforms and Life Sciences industries double-digit growth. Furthermore, they are confident that bookings continue to be dominated by strong demand for digital, cloud, and security-related services, that these services represent approximately 70% of their new bookings, and that these bookings came in as they expected. Also, they are confident that they continued to drive sustainable margin expansion, and that they expect to return to pre-coronavirus growth rates by the second half of this fiscal year
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