Saputo Valuation

Is SAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SAP (CA$25.98) is trading below our estimate of fair value (CA$73.97)

Significantly Below Fair Value: SAP is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAP?

Other financial metrics that can be useful for relative valuation.

SAP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA10.4x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does SAP's PE Ratio compare to its peers?

The above table shows the PE ratio for SAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
PBH Premium Brands Holdings
41.3x43.9%CA$3.9b
LAS.A Lassonde Industries
11.6xn/aCA$1.0b
RSI Rogers Sugar
13.6xn/aCA$693.3m
HLF High Liner Foods
9.8xn/aCA$416.9m
SAP Saputo
33.2x22.3%CA$10.9b

Price-To-Earnings vs Peers: SAP is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the peer average (19.1x).


Price to Earnings Ratio vs Industry

How does SAP's PE Ratio compare vs other companies in the North American Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SAP is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the North American Food industry average (15.4x).


Price to Earnings Ratio vs Fair Ratio

What is SAP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SAP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.2x
Fair PE Ratio33.8x

Price-To-Earnings vs Fair Ratio: SAP is good value based on its Price-To-Earnings Ratio (33.2x) compared to the estimated Fair Price-To-Earnings Ratio (33.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SAP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$25.98
CA$31.60
+21.6%
12.6%CA$36.00CA$24.50n/a10
Mar ’25CA$27.18
CA$31.60
+16.3%
12.6%CA$36.00CA$24.50n/a10
Feb ’25CA$28.57
CA$32.50
+13.8%
13.0%CA$40.00CA$25.00n/a11
Jan ’25CA$26.83
CA$33.05
+23.2%
15.1%CA$40.00CA$25.00n/a10
Dec ’24CA$26.46
CA$33.05
+24.9%
15.1%CA$40.00CA$25.00n/a10
Nov ’24CA$28.36
CA$34.55
+21.8%
14.5%CA$42.00CA$25.50n/a10
Oct ’24CA$28.40
CA$34.55
+21.7%
14.5%CA$42.00CA$25.50n/a10
Sep ’24CA$29.45
CA$34.55
+17.3%
14.5%CA$42.00CA$25.50n/a10
Aug ’24CA$27.71
CA$35.53
+28.2%
12.5%CA$42.00CA$26.30n/a10
Jul ’24CA$29.68
CA$36.28
+22.2%
11.7%CA$42.00CA$26.50n/a9
Jun ’24CA$34.56
CA$40.83
+18.2%
13.9%CA$46.00CA$26.50n/a9
May ’24CA$34.65
CA$40.72
+17.5%
13.7%CA$46.00CA$26.50n/a9
Apr ’24CA$34.97
CA$40.72
+16.4%
13.7%CA$46.00CA$26.50n/a9
Mar ’24CA$36.58
CA$40.67
+11.2%
14.1%CA$46.00CA$26.00CA$27.189
Feb ’24CA$36.32
CA$38.67
+6.5%
12.9%CA$44.00CA$26.00CA$28.579
Jan ’24CA$33.52
CA$38.17
+13.9%
12.9%CA$44.00CA$25.50CA$26.839
Dec ’23CA$33.19
CA$38.17
+15.0%
12.9%CA$44.00CA$25.50CA$26.469
Nov ’23CA$33.52
CA$37.28
+11.2%
12.9%CA$42.00CA$25.50CA$28.369
Oct ’23CA$32.93
CA$37.61
+14.2%
13.0%CA$42.00CA$25.50CA$28.409
Sep ’23CA$33.48
CA$37.61
+12.3%
13.0%CA$42.00CA$25.50CA$29.459
Aug ’23CA$31.63
CA$34.22
+8.2%
12.5%CA$39.00CA$25.00CA$27.719
Jul ’23CA$28.07
CA$33.67
+19.9%
13.2%CA$39.00CA$25.00CA$29.689
Jun ’23CA$25.85
CA$34.33
+32.8%
12.2%CA$39.00CA$25.00CA$34.569
May ’23CA$27.46
CA$34.67
+26.2%
11.9%CA$39.00CA$25.00CA$34.659
Apr ’23CA$29.70
CA$34.89
+17.5%
12.0%CA$39.00CA$25.00CA$34.979
Mar ’23CA$30.40
CA$35.11
+15.5%
12.1%CA$39.00CA$25.00CA$36.589

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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