As of June 10, 2025, Teleperformance SE has a Discounted Cash Flow (DCF) derived fair value of $194.48 per share. With the current market price at $91.20, this represents a potential upside of 113.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $142.00 |
| DCF Fair Value (10-year) | $194.48 |
| Potential Upside (5-year) | 55.7% |
| Potential Upside (10-year) | 113.2% |
| Discount Rate (WACC) | 6.3% - 7.7% |
Revenue is projected to grow from $10280 million in 12-2024 to $16277 million by 12-2034, representing a compound annual growth rate of approximately 4.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 10280 | 23% |
| 12-2025 | 10791 | 5% |
| 12-2026 | 11138 | 3% |
| 12-2027 | 11563 | 4% |
| 12-2028 | 12069 | 4% |
| 12-2029 | 12981 | 8% |
| 12-2030 | 13915 | 7% |
| 12-2031 | 14395 | 3% |
| 12-2032 | 15190 | 6% |
| 12-2033 | 15499 | 2% |
| 12-2034 | 16277 | 5% |
Net profit margin is expected to improve from 5% in 12-2024 to 6% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 523 | 5% |
| 12-2025 | 653 | 6% |
| 12-2026 | 674 | 6% |
| 12-2027 | 700 | 6% |
| 12-2028 | 730 | 6% |
| 12-2029 | 786 | 6% |
| 12-2030 | 842 | 6% |
| 12-2031 | 871 | 6% |
| 12-2032 | 919 | 6% |
| 12-2033 | 938 | 6% |
| 12-2034 | 985 | 6% |
with a 5-year average of $248 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 267 |
| 12-2026 | 293 |
| 12-2027 | 309 |
| 12-2028 | 342 |
| 12-2029 | 383 |
| 12-2030 | 403 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 25 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 1384 | 259 | 353 | 1086 | (314) |
| 2026 | 1446 | 268 | 364 | (494) | 1309 |
| 2027 | 1506 | 278 | 378 | 100 | 751 |
| 2028 | 1591 | 290 | 394 | 140 | 766 |
| 2029 | 1726 | 312 | 424 | (85) | 1076 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 142.00 | 55.7% |
| 10-Year DCF (Growth) | 194.48 | 113.2% |
| 5-Year DCF (EBITDA) | 90.68 | -0.6% |
| 10-Year DCF (EBITDA) | 138.89 | 52.3% |
Is Teleperformance SE (TEP.PA) a buy or a sell? Teleperformance SE is definitely a buy. Based on our DCF analysis, Teleperformance SE (TEP.PA) appears to be significantly undervalued with upside potential of 113.2%. 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 $91.20.