Capgemini (ENXTPA:CAP): Valuation Check After EU Cybersecurity Win and New TechnoVision 2026 AI Trends Launch
Capgemini (ENXTPA:CAP) just landed a multi year EU cybersecurity framework contract and paired it with fresh TechnoVision 2026 trend insights, a one two combination that sharpens its digital transformation narrative for investors.
See our latest analysis for Capgemini.
The market seems to be warming back up to that story, with a 30 day share price return of 19.34 percent and a 90 day gain of 20.21 percent, even though the one year total shareholder return is still slightly negative.
If Capgemini’s latest cybersecurity win and AI positioning have your attention, this could be a good moment to explore other high growth tech and AI names using high growth tech and AI stocks.
With earnings still growing and the share price only recently rebounding, Capgemini trades at a notable discount to analyst targets, raising the key question: is this genuine value, or is the market already baking in tomorrow’s growth?
Most Popular Narrative Narrative: 14.4% Undervalued
Compared with Capgemini’s last close at €147.20, the most followed narrative pegs fair value closer to €171.93, framing the latest rebound as only a partial catch up.
The multiyear shift in portfolio mix towards value added digital, cloud, and data/AI solutions, along with disciplined SG&A management and operational efficiency, is designed to offset near term gross margin pressures, setting up the group for normalized EPS growth and operating margin resilience as growth returns.
Curious how steady, mid single digit growth and gradually rising margins can still justify a richer future earnings multiple than today? Want to see the full playbook behind that valuation label? Or which long term profitability path has been baked into those cash flow assumptions? Dive in to uncover the numbers driving this fair value call.
Result: Fair Value of €171.93 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent European weakness and intensifying AI pricing pressure could stall revenue momentum and challenge the case for higher margins and a richer future multiple.
Find out about the key risks to this Capgemini narrative.
Build Your Own Capgemini Narrative
If you see the story differently, or simply want to test your own assumptions against the data, you can build a personalized view in minutes: Do it your way.
A great starting point for your Capgemini research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
Looking for more investment ideas?
Capgemini might fit your strategy today, but you will kick yourself later if you ignore other opportunities our powerful screener surfaces across sectors and themes.
- Tap into potential multibaggers by targeting out of favor names screened as these 900 undervalued stocks based on cash flows that may still be flying under the market’s radar.
- Capture the next wave of innovation by focusing on these 27 AI penny stocks that are embedding artificial intelligence at the core of their business models.
- Strengthen your portfolio’s income stream by reviewing these 15 dividend stocks with yields > 3% that can help you lock in attractive yields with solid fundamentals.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com