SAP GR

SAP SE

TMT


Presented:12/19/2018
Price:€89.22
Cap:$118.61B
Current Price:€209.80
Cap:$272.58B

Presented

Date12/19/2018
Price€89.22
Market Cap$118.61B
Ent Value$144.82B
P/E Ratio25.08x
Book Value€22.59
Div Yield1.56%
Shares O/S1,193.60M
Ave Daily Vol3,078,440
Short IntN/A

Current

Price€209.80
Market Cap$272.58B
SAP SE provides enterprise application software and software-related services worldwide. It operates through the following business segments: Applications, Technology & Services, and SAP Business Network. The Applications, Technology & Services segment derives its revenue primarily from the sale of software licenses, subscriptions to cloud applications, and related services, which mainly support various professional and premium services, as well as implementation of software products and education services. The SAP Business Network segment emerged from combining all SAP network offerings into one network that covers temporary workforce sourcing, other procurement, end-to-end travel and business travel expense management. The company was founded by Hasso Plattner, Klaus Tschira, Claus Wellenreuther, Dietmar Hopp, and Hans-Werner Hector in 1972 and is headquartered in Walldorf, Germany.

Publicly traded companies mentioned herein: International Business Machines Corp (IBM), Microsoft Corp (MSFT), Oracle Corp (ORCL), salesforce.com Inc (CRM), SAP SE (SAP GR), ServiceNow Inc (NOW), Workday Inc (WDAY)

Highlights

The presenter is long shares of SAP SE (SAP GR), the ERP and cloud service provider, seeing it as a leader in the industry. Despite being the “least paid attention to” $130B market cap software company, SAP’s leading technology and acceleration in its two major segments should drive top-line and margin growth. Currently priced at ~€90, he sees a risk/ reward of ~€80 on the downside, ~€140 on the upside, and a base case price target of ~€125.

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Idea Discussion

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