Capgemini Valuation

Is CAPG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CAPG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAPG (€189.75) is trading below our estimate of fair value (€320.42)

Significantly Below Fair Value: CAPG is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAPG?

Other financial metrics that can be useful for relative valuation.

CAPG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA12.3x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

How does CAPG's PE Ratio compare to its peers?

The above table shows the PE ratio for CAPG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
IT Gartner
47.8x9.9%US$39.2b
507685 Wipro
24.9x8.9%₹2.8t
CTSH Cognizant Technology Solutions
17.4x8.9%US$37.9b
6702 Fujitsu
20.7x6.0%JP¥5.5t
CAPG Capgemini
19.2x8.6%€32.4b

Price-To-Earnings vs Peers: CAPG is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (27.7x).


Price to Earnings Ratio vs Industry

How does CAPG's PE Ratio compare vs other companies in the European IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CAPG is good value based on its Price-To-Earnings Ratio (19.2x) compared to the European IT industry average (19.4x).


Price to Earnings Ratio vs Fair Ratio

What is CAPG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAPG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CAPG's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CAPG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€189.75
€219.82
+15.8%
8.7%€250.00€185.00n/a17
Sep ’25€188.50
€218.59
+16.0%
8.5%€245.00€185.00n/a17
Aug ’25€182.85
€219.76
+20.2%
8.2%€245.00€195.00n/a17
Jul ’25€190.80
€231.24
+21.2%
9.2%€270.00€195.00n/a17
Jun ’25€198.50
€236.41
+19.1%
9.5%€272.00€195.00n/a17
May ’25€203.60
€242.18
+18.9%
8.1%€272.00€210.00n/a17
Apr ’25€214.70
€243.24
+13.3%
7.8%€275.00€210.00n/a17
Mar ’25€226.70
€240.00
+5.9%
7.6%€275.00€210.00n/a17
Feb ’25€207.60
€222.59
+7.2%
6.0%€250.00€209.00n/a17
Jan ’25€190.20
€212.50
+11.7%
6.5%€240.00€185.00n/a18
Dec ’24€188.40
€210.28
+11.6%
6.3%€240.00€185.00n/a18
Nov ’24€166.55
€213.65
+28.3%
6.3%€246.00€185.00n/a17
Oct ’24€166.25
€216.94
+30.5%
7.5%€246.00€185.00€194.6517
Sep ’24€172.85
€217.59
+25.9%
8.1%€257.00€185.00€188.5017
Aug ’24€165.20
€216.47
+31.0%
7.5%€257.00€185.00€182.8517
Jul ’24€170.50
€217.88
+27.8%
8.5%€255.00€185.00€190.8017
Jun ’24€152.55
€217.79
+42.8%
8.2%€255.00€185.00€198.5018
May ’24€165.30
€216.85
+31.2%
7.2%€243.00€185.00€203.6018
Apr ’24€171.10
€217.02
+26.8%
7.2%€243.00€185.00€214.7018
Mar ’24n/a
€217.02
0%
7.2%€243.00€185.00€226.7018
Feb ’24€174.30
€215.35
+23.6%
7.3%€241.00€185.00€207.6018
Jan ’24€158.05
€215.63
+36.4%
7.0%€241.00€190.00€190.2018
Dec ’23€178.65
€214.85
+20.3%
7.1%€241.00€190.00€188.4018
Nov ’23€167.50
€214.85
+28.3%
7.1%€241.00€190.00€166.5518
Oct ’23€165.80
€225.24
+35.8%
7.7%€264.00€190.00€166.2518

Analyst Forecast: Target price is less than 20% higher than the current share price.


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