What Percentage of Accenture’s Stock Price Can Be Attributed To Growth?

-34.94%
Downside
347
Market
226
Trefis
ACN: Accenture logo
ACN
Accenture

In this analysis, we quantify the percentage of Accenture’s (NYSE: ACN) stock that can be attributed to growth.

We know that a stock’s valuation can be highly influenced by future expectations of earnings growth. However, in theory, if a company sees no growth opportunities, it should distribute all its earnings as dividends to its shareholders. Assuming that a company pays all earnings as dividends for the rest of the period, we can calculate Present Value of Growth Opportunity (PVGO) of a stock from the formula given below:

AccenturePVGO

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Have more questions about Accenture? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Accenture