Accenture

Methodology

Accenture's consulting business provides stable earnings growth from digital transformation spending and IT outsourcing trends. Contract backlog and book-to-bill ratios offer revenue visibility, making earnings projections more reliable than project-based competitors. This calculation works well for Accenture given recurring revenue characteristics and consistent execution.

Methodology

Accenture typically commands premium PEG ratios reflecting leadership in cloud migration, AI implementation, and digital transformation. While growth rates remain modest for technology companies, predictability and margin stability justify higher multiples than traditional IT services. Compare to peers like Cognizant and IBM Services to gauge relative valuation within enterprise consulting.

Methodology

Accenture's consistent dividend plus regular increases adds meaningful total return for a professional services firm. The capital-light model generates strong free cash flow supporting both dividends and buybacks. PEGY provides a more complete picture where stable dividend income complements the steady growth profile investors seek in mature technology services.