Capgemini (ENXTPA:CAP) Valuation Check After Recent 12% One-Month Share Price Rebound

Capgemini (ENXTPA:CAP) has quietly outperformed the broader market over the past month, with the stock up around 12%, even as its year to date performance still sits slightly in the red.

See our latest analysis for Capgemini.

That 12.3% 1 month share price return has helped Capgemini claw back some of its earlier weakness, but with the share price still down year to date and the 1 year total shareholder return slightly negative, momentum looks more like a cautious rebuild rather than a breakout.

If Capgemini’s recent rebound has you thinking about where else the market might be repricing growth, it could be worth exploring fast growing stocks with high insider ownership.

With shares still trading below both analyst targets and some intrinsic value estimates despite steady revenue and earnings growth, is Capgemini an underappreciated compounder, or is the market already pricing in its next leg of expansion?

Most Popular Narrative: 14% Undervalued

With Capgemini last closing at €147.85 against a narrative fair value near €171.93, the spread reflects confidence in accelerating digital and AI driven earnings.

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. Recent and ongoing investments in strategic frameworks (such as the Resonance AI framework and RAISE platform) and targeted acquisitions (e.g., WNS), aimed at deepening capabilities in high demand sectors and services, position Capgemini to accelerate earnings growth through both revenue expansion and integration synergies as large scale digital transformation and automation trends intensify globally.

Read the complete narrative.

Curious how steady, mid single digit growth assumptions, rising margins, and a richer future earnings multiple together justify that upside? The full narrative unpacks the precise earnings path, revenue mix shift, and profitability bridge behind this valuation call.

Result: Fair Value of €171.93 (UNDERVALUED)

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

However, persistent weakness in core European markets or prolonged pricing pressure from Gen AI driven vendor consolidation could easily derail that upside narrative.

Find out about the key risks to this Capgemini narrative.

Build Your Own Capgemini Narrative

If you see the story differently or want to stress test the assumptions with your own inputs, you can quickly build a custom view in minutes: Do it your way.

A great starting point for your Capgemini research is our analysis highlighting 2 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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