Teleperformance (ENXTPA:TEP) Valuation in Focus After 2025 Revenue Guidance Cut

Teleperformance (ENXTPA:TEP) has revised its earnings guidance for 2025, now projecting group like-for-like revenue growth between 1% and 2% for the year. This is a change from its earlier range of 2% to 4%. This update is drawing attention from investors as expectations for growth are recalibrated.

See our latest analysis for Teleperformance.

The lowered revenue guidance has weighed on Teleperformance’s momentum, with the stock’s 1-year total shareholder return sitting at -30.35% and a five-year total return down more than 75%. The latest share price of €60.1 reflects a market still adjusting to slower growth expectations and also suggests lingering caution as investors weigh the road ahead.

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With Teleperformance’s valuation dipping far below analyst price targets, the key question emerges: is the current share price reflecting an overly cautious outlook, or is now a real buying opportunity before growth prospects recover?

Most Popular Narrative: 44.7% Undervalued

Teleperformance’s consensus narrative sees a considerable gap between its last close price and the calculated fair value, pointing to a meaningful disconnect between market caution and projected fundamentals.

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 and 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.

Want to know what bold bets on future growth fuel this valuation? Behind that price target lurks a set of analyst assumptions about margin gains, disruptive technology, and an earnings leap that could surprise the market. Wondering how these levers might play out? The real story is waiting. Uncover the narrative’s financial building blocks and see what could power the next move.

Result: Fair Value of €108.6 (UNDERVALUED)

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

However, persistent weakness in U.S. demand and ongoing foreign exchange headwinds could challenge Teleperformance’s recovery narrative. These factors may continue to put pressure on margins and growth.

Find out about the key risks to this Teleperformance narrative.

Build Your Own Teleperformance Narrative

If you would rather chart your own course or believe a different story hides in the numbers, you can put together your own view in under three minutes, and Do it your way.

A great starting point for your Teleperformance research is our analysis highlighting 4 key rewards and 1 important warning sign 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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