Key Takeaways:
- Teleperformance is repositioning itself as a digital business services leader by integrating AI, automation, and high-value CX solutions across its global platform.
- TEP stock could reasonably reach €91 per share by December 2029, based on our valuation assumptions.
- This implies a total return of 46.8% from today’s price of €62, with an annualized return of 10.2% over the next 3.9 years.
Teleperformance SE (TEP) is navigating a transition period as it balances near‑term macro headwinds and client budget pressure with long‑term demand for outsourced digital customer experience, trust, and safety services. The company is leaning into AI‑enabled solutions, higher‑margin specialized services, and disciplined cost controls so it can stabilize profitability and position itself for renewed growth.
The global digital business services provider connects enterprises with consumers across omnichannel contact centers, content moderation, and back‑office operations, and it increasingly embeds automation, analytics, and AI to enhance efficiency and quality. Teleperformance serves diversified end‑markets, including technology, financial services, healthcare, retail, travel, and government, which helps offset weakness in any single vertical while it adjusts its footprint and mix.
TEP shares have been under pressure, with the stock down sharply from five‑year highs and delivering a 29.1% total return over the last year, reflecting investor concerns about regulatory scrutiny, wage inflation, and cyclical demand. Because the market has already repriced the shares, even modest growth and margin stabilization could support attractive returns if execution remains disciplined.
Here’s why Teleperformance stock could deliver solid returns through 2029 if it sustains earnings growth, keeps improving profitability, and continues to allocate capital prudently while the broader CX outsourcing market expands.
What the Model Says for Teleperformance Stock
We analyzed the upside potential for Teleperformance stock using valuation assumptions based on its historical performance, profitability profile, and current market multiple.
Based on estimates of 1.1% annual revenue growth, 14.2% operating margins, and a normalized exit P/E multiple of 4.4x, the model projects Teleperformance stock could rise from €62 to €76 per share in the next 2 years.
That would be a 22.5% total return, or a 11% annualized return over the next 2 years.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for Teleperformance stock:
1. Revenue Growth: 1.1%
Over the past decade, Teleperformance delivered robust expansion, with revenue growing at a 14.1% CAGR over 10 years and 13.9% over 5 years, supported by acquisitions, geographic expansion, and rising outsourcing adoption.
However, growth slowed recently, with 1‑year revenue growth of 23.2% from a higher base and a more muted outlook ahead, as clients optimize costs and as the company digests prior acquisitions.
Based on analysts’ consensus estimates, we assumes 1.1% annual revenue growth from 2024 to 2030, which is significantly below historical rates and reflects a more cautious stance on new volumes and pricing.
2. Operating Margins: 14.2%
Historically, Teleperformance delivered healthy profitability, with operating margins that have stayed in the mid‑teens range as the company scaled its global platform and broadened its mix of higher‑value digital and specialized services.
The company has been investing in technology, employee upskilling, and compliance, while also dealing with wage inflation and regulatory requirements across multiple jurisdictions.
Based on analysts’ consensus estimates, we use an operating margin of 14.2%, slightly below past peaks but consistent with recent levels as Teleperformance manages cost savings initiatives and mix improvements against ongoing investment needs.
3. Exit P/E Multiple: 4.4x
Teleperformance currently trades at a P/E multiple of 5.2x based on the most recent year, which is far below its 5‑year average of 14.5x and 10‑year average of 18.0x, highlighting how sentiment has compressed.
Based on analysts’ consensus estimates, we use a 4.4x exit P/E, which assumes the market continues to apply a discounted multiple relative to history because of perceived structural and regulatory risks.
Build your own Valuation Model to value any stock (It’s free!) >>>
What Happens If Things Go Better or Worse?
Different scenarios for Teleperformance SE stock through 2030 show varied outcomes based on revenue growth, margins, and valuation (these are estimates, not guaranteed returns):
- Low Case: More muted growth and pressured profitability → 5.5% annual returns
- Mid Case: Stabilizes growth, maintains mid‑single‑digit margins, and experiences some multiple normalization → 10.2% annual returns
- High Case: Stronger execution and better sentiment, with revenue growth closer to the upper end → 13.8% annual returns
The current modeling suggests the shares are not priced for aggressive growth, so execution on AI‑enabled efficiency, regulatory risk management, and disciplined capital allocation could be key swing factors for both upside and downside from here.
See what analysts think about TEP stock right now (Free with TIKR) >>>
How Much Upside Does Teleperformance Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
