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Teleperformance SE (TEP) Fair Value & Analysis

Industrials · FR · Market cap €3.2B · ISIN FR0000051807

What is Teleperformance SE really worth?

TS Teleperformance SE TEP · PA
Price€70.44
Fair Value€179.53
Upside+154.9%
Quality59/100

A solid business, trading 61% below our fair value of €179.53.

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Strengths

Moderate debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Mixed Growth (revenue 5y +12.2 %/yr)
!Thin margins · 4.9% net margin
!Moderate moat 48/100

For context

·6.39% dividend yield
Evidence: High Range €134.65 – €256.51

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Share price +5.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (€134.65). 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.
  • A fairly wide model range (€134.65 to €256.51) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€332.16 €42.91 Fair Value €179.53 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range €42.91 – €332.16 · fair‑value band €134.65 – €256.51 · the €70.44 price screens below the €179.53 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Teleperformance SE (TEP) currently trades at €70.44, while our model-based Fair Value estimate is €179.53, implying the stock looks roughly 60.8% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of €299.84 per share, and 24 of the 26 models we run sit above the €70.44 price. Bear case: the Asset-Based group reads lowest at €47.22, and 2 of the 26 models stay below the price. Evidence for this calculation is high.

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 Aug 13, 2026

Our scenario range runs from €134.65 (bear case) to €256.51 (bull case); at €70.44, 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 65% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at 155%, TEP screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €2.64 per share, which is 1.5 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €205.64 €382.85 €673.57 77
Growth DCF €204.10 €366.74 €624.44 76
EPV €97.39 €118.70 €137.08 74
All 26 models by family
DCF Models
FCF DCF €205.64 €382.85 €673.57 77
Owner Earnings €165.38 €313.25 €555.85 73
5Y Revenue Exit €161.59 €296.75 €476.84 71
5Y EBITDA Exit €236.66 €449.26 €713.27 73
5Y P/E Exit €126.13 €224.70 €333.71 70
10Y Revenue Exit €169.00 €299.84 €493.48 65
10Y EBITDA Exit €223.18 €408.18 €684.22 66
10Y P/E Exit €151.95 €248.65 €378.01 63
Earnings-Based
Graham-Dodd €58.14 €256.30 €350.85 64
Lynch FV €66.31 €94.73 €123.14 61
PEG = 1.0 €66.31 €94.73 €123.14 57
EPV €97.39 €118.70 €137.08 74
Dividend Discount
Gordon GGM €37.47 €74.66 €113.05 67
DDM Multi-Stage €37.47 €64.52 €78.80 67
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 66
EV/EBITDA €279.58 €385.30 €491.02 67
EV/Revenue €142.76 €220.04 €297.33 53
Asset-Based
NCAV (Graham) €35.24 €47.22 €70.48 54
Growth DCF
Growth DCF €204.10 €366.74 €624.44 76
Rev-Margin DCF €161.59 €294.87 €464.44 71
Economic Profit
Residual Income €64.66 €75.02 €132.40 74
ROIC Compounder €107.83 €155.64 €220.09 71
Growth Earnings
Growth-Adj P/E €109.15 €155.93 €202.71 67

Widest divergence: DCF Models (€299.84) versus Asset-Based (€47.22). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 8.4
P/S ratio 0.41 P/E × margin
EPS (TTM) €8.40 price ÷ EPS = P/E 8.4
Dividend yield 6.4% payout 53.6%
Net margin 4.9% FY2025
Return on equity 11.5% TTM
More key figures
Profitability
Return on assets (EBIT) 9.7% avg 5y
Operating margin 12.3% TTM
Growth
Revenue (TTM) €10.2B TTM
Revenue growth (YoY) −2.1% 3y avg +7.8%
EPS growth (YoY) +8.6%
Balance sheet & cash flow
Free cash flow €1.2B FY2025
Net debt €4.6B FY2025 · ≈ 3.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 64

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 71
Price trend over the last 3–12 months (market factor)
52W Momentum 58
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.2%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.7% (4.3 + 6.4)
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
Character of growth · EPS growth decomposed (2014-2025) +12.0 % p.a.
Revenue per share +12.4 %

of which total revenue +12.7 % · buybacks/dilution −0.3 %

EBIT margin +2.4 %
Tax rate −1.0 %
Residual (interest, one-offs) −1.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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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 · 248 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 +155% · 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) 6.4% · Top 25%
Debt / equity 0.78× · Higher than 75% of peers

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 8.4× · Cheaper than 75% of peers
P/B 0.91× · Cheaper than median
P/S (TTM) 0.37× · Cheaper than median
P/FCF 3.2× · Cheaper than median
EV/EBITDA 3.7× · Cheaper than 75% of peers
PEG 1.45× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 25
FUTURE0 · sector 27
PAST46 · sector 36
HEALTH61 · sector 92
DIVIDEND100 · sector 48

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

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $204.15 $95.19 −53%
RELX PLC RELX $34.55 $32.24 −7%
Thomson Reuters Corporation TRI C$142.85 C$70.40 −51%
Copart, Inc CPRT $32.76 $28.59 −13%
Global Payments Inc GPN $91.05 $68.98 −24%
RB Global, Inc RBA C$119.68 C$68.30 −43%
Brambles Limited BXB A$19.47 A$17.27 −11%
UL Solutions Inc ULS $74.43 $33.62 −55%
Wolters Kluwer N.V WKL €68.88 €101.27 +47%
Aramark ARMK $59.08 $13.18 −78%

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Frequently asked questions

Is Teleperformance SE (TEP) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of €179.53 versus a price of €70.44, about +155% upside (undervalued).
What is the fair value of TEP?
Our model-based fair value for Teleperformance SE is €179.53 (as of Aug 13, 2026), built from audited fundamentals. The current price: €70.44.
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 Aug 13, 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 6.39% relative to its recent price (as of Aug 13, 2026).
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