Reassessing Sopra Steria Group (ENXTPA:SOP) Valuation After Naming Rajesh Krishnamurthy as Next CEO

The market is digesting Sopra Steria Group (ENXTPA:SOP) naming Rajesh Krishnamurthy as its next CEO from February 2026, a leadership shift that could reshape the stock’s digital transformation story.

See our latest analysis for Sopra Steria Group.

The leadership news arrives as investors reassess Sopra Steria’s trajectory, with the 1 month share price return of 13.7 percent and 1 week share price return of 11.2 percent partly reversing a weaker year to date and a modestly positive 3 year total shareholder return. This suggests that momentum is tentatively rebuilding rather than breaking out.

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With the shares still trading well below analyst targets and our estimate of intrinsic value, the key question now is whether Sopra Steria is genuinely undervalued or whether the market is already pricing in its next phase of growth.

Most Popular Narrative: 26.4% Undervalued

Compared with the last close at €148.60, the most followed narrative implies a fair value near €201.90, framing Sopra Steria as meaningfully mispriced.

Ongoing progress in operating model transformation, working capital improvement (DSO reduction), and strategic M&A in high-value verticals (defense, financial services, aerospace) should enhance operational leverage, boost free cash flow conversion, and lift net margins over the medium term.

Read the complete narrative.

Want to see how modest top line expectations, firmer margins, and a richer future earnings multiple combine to justify this gap to fair value? The interplay between gradual growth, disciplined profitability, and a higher but still conservative valuation anchor is more intricate than it looks at first glance. Curious which assumptions about future earnings power really carry this story and what has to go right operationally to reach that target?

Result: Fair Value of €201.90 (UNDERVALUED)

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

However, the narrative could be challenged if weak organic growth persists in core European markets or if rising employee costs and attrition further squeeze margins.

Find out about the key risks to this Sopra Steria Group narrative.

Build Your Own Sopra Steria Group Narrative

If you see the story differently or prefer to base decisions on your own work, you can craft a personalized view in just minutes: Do it your way

A great starting point for your Sopra Steria Group research is our analysis highlighting 3 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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