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Teleperformance SE (TEP) Fair Value & Analysis

Industrials · FR · Market cap €3.2B

TS Teleperformance SE TEP · PA
Price€70.00
Fair Value€165.60
Upside+136.6%
Quality59/100
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Mixed Growth
Thin margins · 4.9% net margin
Moderate debt · generates free cash flow
8.42% dividend yield
Ranks above peers (12/15)
Moderate moat 48/100
Evidence: High Range €124.20 – €207.01 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from €179.50 to €165.60 (−7.7%) since Jun 25, 2026. Share price +38.1% over the past month.

A solid business, screening 137% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (€124.20). The market is more pessimistic than our downside scenario.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

€332.16 €42.91 Fair Value €165.60 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range €42.91 – €332.16 · fair‑value band €124.20 – €207.01 · the €70.00 price screens below the €165.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Teleperformance SE (TEP) currently trades at €70.00, while our model-based Fair Value estimate is €165.60, implying the stock looks roughly 136.6% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Teleperformance SE generated revenue of €10.2B at a net margin of 4.9%. Revenue declined 2.1% year over year. It earns a return on equity of 11.5%. Net debt stands at €4.6B. Fundamentals as of Jul 16, 2026

Our scenario range runs from €124.20 (bear case) to €207.01 (bull case); at €70.00, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 22% below its 52-week high and 64% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at 137%, TEP screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF €204.10 €366.74 €624.44 80
Residual Income €64.66 €75.02 €132.40 76
Rev-Margin DCF €161.59 €294.87 €464.44 74
All 26 models by family
DCF Models
FCF DCF €205.64 €382.85 €673.57 38
Owner Earnings €165.38 €313.25 €555.85 31
5Y Revenue Exit €161.59 €296.75 €476.84 39
5Y EBITDA Exit €236.66 €449.26 €713.27 41
5Y P/E Exit €126.13 €224.70 €333.71 38
10Y Revenue Exit €169.00 €299.84 €493.48 36
10Y EBITDA Exit €223.18 €408.18 €684.22 37
10Y P/E Exit €151.95 €248.65 €378.01 35
Earnings-Based
Graham-Dodd €58.14 €256.30 €350.85 54
Lynch FV €66.31 €94.73 €123.14 50
PEG = 1.0 €66.31 €94.73 €123.14 46
EPV €97.39 €118.70 €137.08 59
Dividend Discount
Gordon GGM €37.47 €74.66 €113.05 70
DDM Multi-Stage €37.47 €64.52 €78.80 61
Multiples
P/E Multiple €134.65 €179.53 €224.42 63
P/S Multiple €109.00 €145.34 €181.67 58
P/B Multiple €109.00 €145.34 €181.67 55
EV/EBIT €215.09 €299.31 €383.53 53
EV/EBITDA €279.58 €385.30 €491.02 54
EV/Revenue €142.76 €220.04 €297.33 43
Asset-Based
NCAV (Graham) €35.24 €47.22 €70.48 50
Growth DCF
Growth DCF €204.10 €366.74 €624.44 80
Rev-Margin DCF €161.59 €294.87 €464.44 74
Economic Profit
Residual Income €64.66 €75.02 €132.40 76
ROIC Compounder €107.83 €155.64 €220.09 72
Growth Earnings
Growth-Adj P/E €109.15 €155.93 €202.71 68

Widest divergence: DCF Models (€299.84) versus Asset-Based (€47.22). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €10.2B
Revenue growth (YoY) -2.1%
Net margin 4.9%
Return on equity 11.5%
Free cash flow €1.2B FY2025
P/E ratio 7.5
More key figures
Operating margin 12.3%
EPS (TTM) €8.40
Dividend yield 7.5%
EPS growth (YoY) +8.6%
Net debt €4.6B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 55

Profitability 40
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 52
Distance to the 52-week high (market factor)
Net Issuance 91
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Teleperformance SE, together with its subsidiaries, operates as a digital business services company in France and internationally. The company operates in Core Services and Specialized Services segments.

Full company description

Teleperformance SE, together with its subsidiaries, operates as a digital business services company in France and internationally. The company operates in Core Services and Specialized Services segments. The company offers customer relationship, technical assistance, and customer acquisition services; business processes management, and back office and digital platform services; online interpretation, visa application management, health management, recruitment process outsourcing advisory and assistance, and accounts receivable credit management services. It also provides digital CX, trust and safety, artificial intelligence, real-time speech understanding, StoryfAI application, TP microservices, and video CX; back-office processing, integrated sales, finance and accounting, smartshoring, work-at-home, multilingual services, ad sales, and rebadging solutions; advanced analytics, business process optimization, business transformation consulting, and technology services; and claims management, collection services, interpretation and translation, recruitment process outsourcing, visa and consular services, and healthcare support. The company serves automotive, energy and utilities, media, government, technology, travel, hospitality, cargo, banking and financial services, healthcare, insurance, retail and e-commerce, telecom, and video games industries. The company was incorporated in 1910 and is based in Paris, France.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Teleperformance SE reported revenue of €10.2B in FY2025 versus €7.1B in FY2021, a compound +9.4%/yr. Reported net income was €497M in FY2025, compounding −2.8%/yr from FY2021.

Growth Quality 80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€10.2B
Latest YoY
−0.7%
Avg. growth/yr (3Y)
+7.8%
Avg. growth/yr (5Y)
+12.2%
Avg. growth/yr (24Y)
+7.9%
Revenue +9.4%/yr
FY21 €7.1B
FY22 €8.2B
FY23 €8.3B
FY24 €10.3B
FY25 €10.2B
Net income −2.8%/yr
FY21 €557M
FY22 €643M
FY23 €592M
FY24 €523M
FY25 €497M

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Cite: Fair Value Calculator (2026). "Teleperformance SE Fair Value". https://www.fairvalue-calculator.com/stock/TEP

Peer Group

Specialty Business Services · 255 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Above median
Fair Value upside +137% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 6% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 12% · Above median
Revenue growth -2% · Below median
Dividend yield (TTM) 8.4% · Top 25%
Debt / equity 0.78× · Higher than 75% of peers

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 6.6× · Cheaper than 75% of peers
P/B 0.91× · Cheaper than median
P/S (TTM) 0.36× · Cheaper than median
P/FCF 3.1× · Cheaper than median
EV/EBITDA 3.7× · Cheaper than 75% of peers
PEG 1.45× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 24
FUTURE 0 · sector 25
PAST 46 · sector 33
HEALTH 61 · sector 92
DIVIDEND 100 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

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Frequently asked questions

Is Teleperformance SE (TEP) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of €165.60 versus a price of €70.00, about +137% (undervalued).
What is the fair value of TEP?
Our model-based fair value for Teleperformance SE is €165.60 (as of Jul 16, 2026), built from audited fundamentals. The current price is €70.00.
What is the quality score of TEP?
Teleperformance SE has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Teleperformance SE (TEP)?
Teleperformance SE reported trailing-twelve-month revenue of about €10.2B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of TEP?
The net profit margin of Teleperformance SE is about 4.9%, meaning it keeps roughly 4.9% of revenue as net income. Based on the latest reported figures.
Does Teleperformance SE pay a dividend?
Teleperformance SE currently shows a dividend yield of about 7.50% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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