Is Accenture Plc overvalued or undervalued?

As of 7 July 2025, the valuation grade for Accenture Plc has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 27, which is significantly higher than its peer Cisco Systems, Inc. at 23.85 and Fortinet, Inc. at 32.08. Additionally, Accenture's EV to EBITDA stands at 17.94, while the industry average is lower, suggesting potential for growth compared to its peers.
In comparison to the broader market, Accenture has underperformed against the S&P 500, with a year-to-date return of -31.91% versus the index's 12.22%. This underperformance, alongside a PEG ratio of 27.02, indicates that while the company has strong fundamentals, its current market price may not fully reflect its growth potential relative to peers. Overall, Accenture's strong ROCE of 39.02% and ROE of 27.27% further support the conclusion that it is undervalued in the current market environment.