As of May 28, 2025, Sopra Steria Group SA has a Discounted Cash Flow (DCF) derived fair value of $269.39 per share. With the current market price at $191.90, this represents a potential upside of 40.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $232.13 |
| DCF Fair Value (10-year) | $269.39 |
| Potential Upside (5-year) | 21.0% |
| Potential Upside (10-year) | 40.4% |
| Discount Rate (WACC) | 7.0% - 9.2% |
Revenue is projected to grow from $5777 million in 12-2024 to $9981 million by 12-2034, representing a compound annual growth rate of approximately 5.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 5777 | 0% |
| 12-2025 | 6055 | 5% |
| 12-2026 | 6509 | 8% |
| 12-2027 | 6645 | 2% |
| 12-2028 | 7208 | 8% |
| 12-2029 | 7559 | 5% |
| 12-2030 | 7916 | 5% |
| 12-2031 | 8582 | 8% |
| 12-2032 | 9012 | 5% |
| 12-2033 | 9236 | 2% |
| 12-2034 | 9981 | 8% |
Net profit margin is expected to improve from 6% in 12-2024 to 5% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 325 | 6% |
| 12-2025 | 306 | 5% |
| 12-2026 | 329 | 5% |
| 12-2027 | 336 | 5% |
| 12-2028 | 364 | 5% |
| 12-2029 | 382 | 5% |
| 12-2030 | 400 | 5% |
| 12-2031 | 434 | 5% |
| 12-2032 | 455 | 5% |
| 12-2033 | 467 | 5% |
| 12-2034 | 504 | 5% |
with a 5-year average of $76 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 83 |
| 12-2026 | 91 |
| 12-2027 | 91 |
| 12-2028 | 92 |
| 12-2029 | 99 |
| 12-2030 | 105 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 82 |
| Days Inventory | 17 |
| Days Payables | 124 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 588 | 136 | 88 | 77 | 287 |
| 2026 | 634 | 146 | 95 | 94 | 299 |
| 2027 | 646 | 149 | 97 | 3 | 396 |
| 2028 | 694 | 162 | 105 | 107 | 320 |
| 2029 | 731 | 170 | 110 | 63 | 388 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 232.13 | 21.0% |
| 10-Year DCF (Growth) | 269.39 | 40.4% |
| 5-Year DCF (EBITDA) | 175.07 | -8.8% |
| 10-Year DCF (EBITDA) | 220.37 | 14.8% |
Is Sopra Steria Group SA (SOP.PA) a buy or a sell? Sopra Steria Group SA is definitely a buy. Based on our DCF analysis, Sopra Steria Group SA (SOP.PA) appears to be significantly undervalued with upside potential of 40.4%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $191.90.