Added to YB: 2026-09-15
Pitch date: 2026-09-12
SAP [neutral]
SAP SE
+3.01%
current return
Author Info
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Company Info
SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide.
Market Cap
EUR 204.6B
Pitch Price
EUR 180.82
Price Target
N/A
Dividend
1.41%
EV/EBITDA
16.90
P/E
26.54
EV/Sales
5.33
Sector
Software
Category
value
SAP: Do High Switching Costs Make A Great Company?
SAP (watchlist): This mission-critical ERP leader is a very good, cash-generative company, but not a great one: high switching costs protect the installed base while partner dependence, faster-growing competitors and migration-driven cloud growth constrain expansion. Using €7B of adjusted FCF, 6% five-year growth and a 3.4% exit FCF yield produces only a 6.2% implied return versus a 15% hurdle, leaving the shares on the watchlist.
Read full article (20 min)