Capgemini (ENXTPA:CAP) Partners With Duality Technologies, Is The Stock Trading At A Discount?

Capgemini (ENXTPA:CAP) has entered a new partnership with Duality Technologies focused on secure AI and analytics across sensitive, regulated data. This development puts privacy preserving computation firmly on investors' radar.

See our latest analysis for Capgemini.

Capgemini's latest Duality deal lands after a weak run for the stock, with the 30 day share price return down 16.85% and the year to date share price return down 35.55%. The 1 year total shareholder return has also fallen 35.56%, suggesting sentiment has cooled even as investors reassess how secure AI partnerships might affect long term prospects.

If secure AI is on your radar after this move from Capgemini, it could be a useful moment to broaden your watchlist with 61 profitable AI stocks that aren't just burning cash

With Capgemini shares down sharply over the past year and trading at a discount to some analyst and intrinsic estimates, the key question is whether the stock is undervalued or if the market is already pricing in future growth.

Most Popular Narrative: 38.5% Undervalued

Capgemini's most followed narrative points to a fair value of €147.60 compared with the last close at €90.72, which frames the current sell off very differently for valuation focused investors.

The multiyear shift in portfolio mix towards value-added digital, cloud, and data/AI solutions, along with disciplined SG&A management and operational efficiency, is designed to offset near-term gross margin pressures, setting up the group for normalized EPS growth and operating margin resilience as growth returns.

Read the complete narrative.

Want to see what sits behind that confidence in Capgemini? The narrative leans hard on sustained revenue expansion, margin rebuilding and a richer earnings multiple. The exact mix might surprise you.

Result: Fair Value of €147.60 (UNDERVALUED)

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

However, Capgemini still faces pressure from weaker demand in key European markets, as well as potential margin strain if pricing competition and restructuring costs intensify.

Find out about the key risks to this Capgemini narrative.

Next Steps

With sentiment on Capgemini clearly mixed, and with both risks and rewards in play, move quickly to review the full picture for yourself using the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Capgemini?

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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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