SAP Valuation

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

SAP (CHF139) is trading below our estimate of [[fair value]] (CHF195.07)

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

Valuation Score

2/6

Valuation Score 2/6

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 (CHF139) is trading below our estimate of fair value (CHF195.07)

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.

The above table shows the n/a ratio for SAP. This is calculated by dividing SAP's market cap by their current preferred multiple.
What is SAP's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	€233.49b

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/Revenue	7.1x
Enterprise Value/EBITDA	28.5x
PEG Ratio	2.4x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	46.9x
TEMN Temenos	39.7x	14.4%	CHF 4.6b
CRM Salesforce	49.4x	13.9%	US$278.1b
ADBE Adobe	40.8x	16.5%	US$221.2b
INTU Intuit	57.6x	16.5%	US$170.8b
SAP SAP	91.2x	37.9%	CHF 233.5b

Price-To-Earnings vs Peers: SAP is expensive based on its Price-To-Earnings Ratio (91.2x) compared to the peer average (46.4x).

Price to Earnings Ratio vs Industry

How does SAP's PE Ratio compare vs other companies in the European Software Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	32.7%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	32.7%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: SAP is expensive based on its Price-To-Earnings Ratio (91.2x) compared to the European Software industry average (29.9x).

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 Ratio	91.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SAP's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.