Teleperformance SE is an example of this — which is why it was the worst performer in our 2023’s top 10 stocks with 35% losses compared to the benchmark MSCI Europe’s 4.7% returns. Based on our updated in-house valuations of the company, the intrinsic value of Teleperformance is roughly around 55% above its current trading price of EUR162.20 ($239.12).
Teleperformance SE: -35%
Acquiring businesses for a premium is likely to hurt short-term financials but if done for a strategic purpose, it can create value well beyond the additional capital spent on the purchase.
