Calculating The Intrinsic Value Of SAP SE (ETR:SAP)
Jul 07
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- 7D-0.6%
- 3M-29.4%
- 1Y-41.2%
- YTD-27.2%
In the last week, Software has been flat. Unfortunately though, the industry is down 41% over the past 12 months. As for the next few years, earnings are expected to grow by 14% per annum.
Industry Valuation and Performance
Has the German Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 Apr 2026 | €185.6b | €41.1b | €7.1b | 19.1x | 26.1x | 4.5x |
| Sat, 28 Feb 2026 | €213.7b | €41.1b | €7.4b | 26.1x | 28.8x | 5.2x |
| Mon, 26 Jan 2026 | €247.3b | €40.8b | €7.3b | 27.1x | 33.7x | 6.1x |
| Wed, 24 Dec 2025 | €260.1b | €40.8b | €7.3b | 26.9x | 35.5x | 6.4x |
| Fri, 21 Nov 2025 | €258.8b | €40.8b | €7.3b | 25.8x | 35.3x | 6.3x |
| Sun, 19 Oct 2025 | €288.3b | €39.4b | €6.7b | 32.5x | 43.1x | 7.3x |
| Tue, 16 Sep 2025 | €269.8b | €39.4b | €6.7b | 33.7x | 40.4x | 6.8x |
| Thu, 14 Aug 2025 | €300.0b | €39.4b | €6.7b | 31.3x | 44.9x | 7.6x |
| Sat, 12 Jul 2025 | €329.8b | €38.6b | €5.9b | 30.2x | 56.1x | 8.5x |
| Mon, 09 Jun 2025 | €341.2b | €38.9b | €5.9b | 31x | 58.1x | 8.8x |
| Wed, 07 May 2025 | €330.2b | €39.0b | €5.8b | 34.1x | 56.7x | 8.5x |
| Fri, 04 Apr 2025 | €300.1b | €38.7b | €3.3b | 25.4x | 90.4x | 7.8x |
| Sun, 02 Mar 2025 | €331.7b | €38.5b | €3.3b | 21.3x | 100.8x | 8.6x |
| Tue, 28 Jan 2025 | €330.2b | €37.5b | €3.0b | 22.6x | 111.9x | 8.8x |
| Thu, 26 Dec 2024 | €295.8b | €37.4b | €2.9b | 22.8x | 100.6x | 7.9x |
| Sat, 23 Nov 2024 | €284.1b | €37.4b | €2.9b | 24.3x | 96.6x | 7.6x |
| Mon, 21 Oct 2024 | €269.3b | €36.6b | €2.8b | 26.7x | 97.8x | 7.4x |
| Wed, 18 Sep 2024 | €253.1b | €36.6b | €2.8b | 26.4x | 90.9x | 6.9x |
| Fri, 16 Aug 2024 | €250.4b | €37.6b | €2.7b | 26.7x | 93.2x | 6.7x |
| Sun, 14 Jul 2024 | €238.4b | €36.1b | €2.8b | 22.9x | 85.7x | 6.6x |
| Tue, 11 Jun 2024 | €225.4b | €36.5b | €2.6b | 22.6x | 87.9x | 6.2x |
| Thu, 09 May 2024 | €223.5b | €36.4b | €2.5b | 23.2x | 87.7x | 6.1x |
| Sat, 06 Apr 2024 | €228.1b | €36.5b | €3.9b | 20.2x | 59.2x | 6.3x |
| Mon, 04 Mar 2024 | €223.7b | €36.2b | €4.1b | 20.9x | 55.1x | 6.2x |
| Wed, 31 Jan 2024 | €213.5b | €37.0b | €4.0b | 23.7x | 53.2x | 5.8x |
| Fri, 29 Dec 2023 | €185.6b | €38.0b | €2.3b | 24x | 81.5x | 4.9x |
| Sun, 26 Nov 2023 | €187.0b | €38.0b | €2.3b | 24.2x | 82.6x | 4.9x |
| Tue, 24 Oct 2023 | €164.4b | €37.5b | €2.5b | 24.9x | 64.6x | 4.4x |
| Thu, 21 Sep 2023 | €167.3b | €37.6b | €1.8b | 27.5x | 91.1x | 4.4x |
| Sat, 19 Aug 2023 | €166.6b | €37.6b | €1.8b | 27.8x | 90.5x | 4.4x |
| Mon, 17 Jul 2023 | €173.0b | €37.1b | €1.9b | 31x | 89.7x | 4.7x |
| Wed, 14 Jun 2023 | €169.8b | €37.4b | €2.2b | 32.2x | 75.6x | 4.5x |
| Fri, 12 May 2023 | €164.6b | €37.4b | €2.3b | 29.3x | 72.3x | 4.4x |
| Sun, 09 Apr 2023 | €157.0b | €36.6b | €2.9b | 27.5x | 54.2x | 4.3x |
Price to Earnings Ratio
54.2x
Current Industry PE
- Investors are pessimistic on the German Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 26.1x which is lower than its 3-year average PE of 70.9x.
- The 3-year average PS ratio of 6.4x is higher than the industry's current PS ratio of 4.5x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 35% per year over the last three years.
- Revenues for these companies have grown 4.0% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the German Tech industry?
| DE Market | 0.20% | |
| Tech | -0.49% | |
| Software | -0.60% | |
| Application Software | -0.59% | |
| Systems Software | -2.96% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 69.7x.
- Analysts expect its future annual earnings growth (14.1%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 21% over the next 5 years.
- However this is lower than its past earnings growth rate of 27% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SAP SAP | €148.86 | 1.3% +€2.3b | -40.2% | PE24.3x | |
| 1INN innoscripta | €69.00 | 5.8% +€38.0m | n/a | PE16.2x | |
| MUM Mensch und Maschine Software | €34.95 | 3.6% +€19.8m | -32.1% | PE18.1x | |
| SJJ Serviceware | €12.60 | 4.1% +€5.3m | -13.7% | PE72.8x | |
| AOF ATOSS Software | €75.90 | 0.3% +€3.2m | -40.7% | PE25x |
