Teleperformance Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • PM vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TEP (€114.45) is trading below our estimate of fair value (€337.2)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TEP 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/Revenue1.2x
Enterprise Value/EBITDA7x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.7x
BVI Bureau Veritas
24.2x6.8%€12.2b
ELIS Elis
16.9x11.6%€4.9b
SPIE SPIE
33.6x28.2%€5.1b
PLX Pluxee
48.1x23.5%€3.9b
TEP Teleperformance
10.8x14.5%€7.0b

Price-To-Earnings vs Peers: TEP is good value based on its Price-To-Earnings Ratio (10.8x) compared to the peer average (30.7x).


Price to Earnings Ratio vs Industry

How does TEP's PE Ratio compare vs other companies in the European Professional Services Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TEP is good value based on its Price-To-Earnings Ratio (10.8x) compared to the European Professional Services industry average (18.5x).


Price to Earnings Ratio vs Fair Ratio

What is TEP'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.

TEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.8x
Fair PE Ratio24.2x

PM vs Fair Ratio: TEP is good value based on its Price-To-Earnings Ratio (10.8x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


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 TEP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€114.45
€194.65
+70.1%
19.2%€250.00€112.00n/a17
Feb ’25€140.10
€192.63
+37.5%
20.1%€250.00€112.00n/a16
Jan ’25€132.05
€193.07
+46.2%
20.9%€250.00€112.00n/a15
Dec ’24€128.00
€193.07
+50.8%
20.9%€250.00€112.00n/a15
Nov ’24€111.15
€202.39
+82.1%
28.5%€360.00€112.00n/a16
Oct ’24€119.40
€218.97
+83.4%
27.0%€360.00€112.00n/a16
Sep ’24€129.20
€247.48
+91.5%
23.6%€380.00€160.00n/a15
Aug ’24€128.35
€255.81
+99.3%
20.6%€380.00€170.00n/a15
Jul ’24€153.45
€297.00
+93.5%
17.1%€380.00€220.00n/a16
Jun ’24€140.80
€299.01
+112.4%
19.7%€380.00€146.17n/a16
May ’24€180.80
€313.45
+73.4%
18.5%€380.00€146.17n/a16
Apr ’24€221.70
€327.72
+47.8%
16.0%€390.00€146.17n/a17
Mar ’24€244.90
€330.48
+34.9%
16.2%€390.00€146.17n/a17
Feb ’24€260.50
€327.70
+25.8%
17.8%€395.00€146.17€140.1016
Jan ’24€222.70
€354.89
+59.4%
19.3%€425.00€146.17€132.0517
Dec ’23€221.20
€359.89
+62.7%
19.7%€435.00€146.17€128.0017
Nov ’23€266.10
€393.63
+47.9%
11.8%€465.00€244.28€111.1518
Oct ’23€260.90
€419.10
+60.6%
7.8%€510.00€360.00€119.4018
Sep ’23€283.00
€420.49
+48.6%
7.4%€510.00€360.00€129.2018
Aug ’23€329.80
€420.49
+27.5%
7.4%€510.00€360.00€128.3518
Jul ’23€295.90
€435.37
+47.1%
9.2%€538.00€360.00€153.4518
Jun ’23€301.70
€439.82
+45.8%
8.6%€538.00€360.00€140.8018
May ’23€342.70
€438.46
+27.9%
8.5%€538.00€360.00€180.8019
Apr ’23€346.30
€436.83
+26.1%
8.6%€538.00€360.00€221.7019
Mar ’23€332.50
€435.85
+31.1%
8.7%€538.00€360.00€244.9019
Feb ’23€336.70
€440.49
+30.8%
7.6%€525.00€400.00€260.5020

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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