Comprehensive evaluation of Accenture (ACN).

---

🧩 1. Understandable Business – (Buffett, Lynch, Graham)

✔️ Pass

💡 What It Does: Accenture is a global leader in professional services—specializing in IT consulting, digital transformation, AI solutions, and managed services.

📦 Business Simplicity: Clear business model with essential services. Helps clients across industries adopt emerging tech, reduce costs, and scale innovation.

✅ Legend Fit: Within the investor’s circle of competence and straightforward to grasp.

---

🛡️ 2. Durable Competitive Advantage – (Buffett, Munger, Lynch)

✔️ Pass

🔐 Moats:

• Brand & Trust: Ranked most admired company in its industry 12 years straight.
• Scale & Global Reach: Over 800,000 employees; top partner for major enterprises.
• Switching Costs: Deep client integration and multi-year contracts.
• Technology Leadership: Market leader in Gen AI transformation.

📊 Metrics:

• Bookings: $20.9B in Q2, with 32 clients over $100M—clear industry leader.
• AI Revenue: $600M in Q2, up from $900M for all FY24—rapid growth trajectory.

---

🧾 3. Quantitative Value & Financial Health – (Greenblatt, Graham, Klarman)

✔️ Pass

💰 Financial Metrics:

• EPS: $2.82 (+2% YoY)
• Free Cash Flow: $2.7B in Q2
• ROE: ~45%
• Debt/Equity: 0.47 – very conservative

📉 Valuation Ratios:

• EV/EBITDA ~17.3x (elevated, but fair for quality)
• PEG: 3.3x – rich, but backed by quality growth
• High cash returns: $2.4B to shareholders in Q2 via dividends & buybacks

---

📊 4. Growth & GARP – (Lynch, Buffett)

✔️ Pass

📈 Growth:

• Revenue up 8.5% in local currency
• Managed services +11%, Cloud & AI-led units growing double digits
• 11 strategic acquisitions in 6 months to drive niche capability growth

🔄 GARP Assessment:

• Slightly high PEG, but strong earnings momentum, massive reinvestment in AI & digital

---

🌍 5. Macro & Cyclical Positioning – (Dalio, Marks)

✔️ Pass

🌐 Macro Awareness:

• Geopolitical uncertainty, consumer sentiment, and U.S. federal budget scrutiny noted
• Well-diversified globally—Americas (11% growth), EMEA (8%), Asia-Pacific more muted (1%)

🔁 Cyclical Insights:

• Secular tailwinds from AI, digital transformation, and automation
• Risk from U.S. federal contract reviews (~8% of revenue), but managed in guidance

---

📉 6. Risk Aversion & Margin of Safety – (Klarman, Graham, Marks)

✔️ Pass

🛑 Risks Managed:

• Clear articulation of federal risk in FY25 guidance
• Conservative balance sheet & capital allocation
• Guidance range accounts for uncertainty without relying on discretionary spend rebound

🎯 Valuation Safety:

• Intrinsic value est. ~$385 vs current ~$317 = ~21.5% upside

---

🧠 7. Management Quality & Capital Allocation – (Buffett, Munger, Lynch)

✔️ Pass

🧠 Leadership:

• CEO Julie Sweet demonstrating strategic focus, resilience, and clarity
• $929M dividend, $1.4B buybacks in Q2 = ~5% annual shareholder yield

💼 Strategic Moves:

• Building AI workforce (goal: 80,000 by FY26)
• Investing in high-value verticals (e.g., digital twins, supply chain AI)

---

⚖️ 8. Final Valuation & Investment Decision

✔️ Pass

📈 Valuation:

• Price: ~$317
• Estimated Intrinsic Value: ~$385
• Free Cash Flow Yield: ~3.5%

🎯 Decision: Accenture is fairly valued given its long-term growth prospects, AI leadership, and rock-solid fundamentals. A compelling long-term hold with a favorable risk/reward skew.

---

📌 Summary Table: Investing Legends Scorecard

---

🧾 Final Verdict: 📣 Accenture (ACN) is a premium compounder at a fair price—well-positioned for the future with scalable AI investments, strategic execution, and conservative financial stewardship. Suitable for long-term investors seeking high-quality tech-service exposure with a moderate margin of safety. 💼📊🌍