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Added to YB: 2025-07-31

Pitch date: 2025-07-30

SAP [neutral]

SAP SE

-17.09%

current return

Author Info

Northwest Frontier Capital is a generalist analyst with established track record of in Small and Mid-Cap and TMT investing across both the buy and sell-side. Philosophy based on identifying high quality companies with strong fundamentals, skilled management teams and clear competitive advantages, that can invest at high incremental ROIC on a persistent basis. Then looking to purchase these companies at intrinsic value and hold for the long-term. Sign up for the newsletter.

Company Info

SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide.

Market Cap

EUR 242.5B

Pitch Price

EUR 5.50

Price Target

N/A

Dividend

1.13%

EV/EBITDA

21.80

P/E

34.55

EV/Sales

6.63

Sector

Software

Category

growth

Show full summary:
SAP Q2: Constant Consistency

SAP (earnings update): Strong Q2 w/ 28% cloud backlog growth to €18bn, cloud rev +28%, ERP suite +34%, op profit +35% to €2.57bn. Market missed long-term drivers: 1) Maintenance backlog transition (2-3x spend) 2) Geographic expansion (Asia +33%) 3) Business Data Cloud traction 4) AI productivity gains. Expensive at 38.5x FY25 P/E but double-digit IRR potential.

Read full article (7 min)