Eroding Pricing Power And Execution Risks Will Unsettle Prospects

AnalystLowTarget

Not Invested

Community Contributor

Published

23 Jun 25

Updated

21 Dec 25

Views

100

n/a

AnalystLowTarget's Fair Value

n/a

-13.6%

5.1%

-13.6%

5.1%

You can edit this narrative until Dec 22 7:05 PM. Then, changes will post as Updates.

Author's Valuation

€222.944.7% undervalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 21 Dec 25

Fair value Increased 2.66%

SAP Cloud Transition And Legal Overhangs Are Expected To Shape Returns

Analysts have modestly lifted their price target for SAP, raising fair value to approximately $223 from about $217, as they factor in stronger expected revenue growth and higher future earnings multiples despite slightly lower margin assumptions. This view is supported by a series of recent Overweight and Outperform ratings along with upward target revisions.

AnalystLowTarget Fair Value

€222.94

4.7% undervalued

Future estimation in

Growth p.a.

Decrease

Increase

Current revenue growth rate

11.15%

Software revenue growth rate

1.27%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

6.35%

Calculation

€8.76b

Earnings '28

35.41x

PE Ratio '28

€310.16b

Market Cap '28

€310.16b

Market Cap '28

1.16b

No. shares '28

€268.24

Share Price '28

€268.24 Share Price '28

Discounted to 2025 @ 6.37% p.a.

€222.89

Fair Value '25