Teleperformance (ENXTPA:TEP): Assessing Valuation After Major UK Public Sector Framework Win

Teleperformance (ENXTPA:TEP) has just announced its appointment to the Crown Commercial Services MYR 6295 framework, which not only renews its prominent role in citizen experience but also expands its footprint into business services for UK public sector clients.

See our latest analysis for Teleperformance.

Despite Teleperformance’s high-profile expansion into UK public sector services, recent trading has been tough, with a 1-year total shareholder return of -32.4% and the share price still sitting at €63.4. Momentum remains sluggish after a sharp 90-day share price drop. Investors will be watching closely to see if these new business wins can start shifting sentiment.

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With analyst targets suggesting substantial upside and fundamentals posting solid, though not spectacular, growth, the real question is whether Teleperformance is trading at a bargain today or if the market is already accounting for any incoming rebound in performance.

Most Popular Narrative: 43.5% Undervalued

The latest narrative pins Teleperformance’s fair value nearly twice as high as the recent close. That striking gap demands a closer look at the numbers driving this stance.

Despite prevailing market fears about automation replacing BPO providers, the company has shown that integration of advanced AI and automation (for example, 250+ AI projects deployed, operational use of Anna AI in recruitment) is expanding the value chain into higher-value, complex services where human oversight is still crucial. These transformations are anticipated to drive margin expansion and support sustainable earnings growth.

Read the complete narrative.

Curious why so many see deep value here? This narrative is built on bold forecasts for future revenues, margins, and a profit multiple usually reserved for industry leaders. Wondering what key assumptions let analysts justify such an aggressive target? Explore the full breakdown and see if the conviction matches the facts.

Result: Fair Value of €112.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent revenue declines in Specialized Services and ongoing currency headwinds could quickly challenge the case for a near-term earnings rebound at Teleperformance.

Find out about the key risks to this Teleperformance narrative.

Build Your Own Teleperformance Narrative

If you have a different perspective or would rather dig into the data yourself, it only takes a few minutes to piece together your own view. So why not Do it your way.

A great starting point for your Teleperformance research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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