SAP SE provides application and analytics software and software-related services for enterprises worldwide. The company offers solutions covering various lines of businesses, including asset management, commerce, finance, human resources, manufacturing, marketing, sales, service, sourcing and procurement, supply chain, and sustainability, as well as research and development, and engineering. The company was founded in 1972 and is based in Walldorf, Germany.
SAP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sap Se. To summarize, we found that Sap Se ranked in the 10th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Sap Se ended up being:
In the past 4.95 years, Sap Se has a compound free cash flow growth rate of 0%; that's higher than only 18.11% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 11% of the company's capital (with equity being the remaining amount). Approximately merely 24.35% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Sap Se's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -21.96. This coverage rate is greater than that of only 5.3% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SAP, try ITRI, SONO, TDC, WK, and CLRO.
Investment Thesis SAP (SAP) already has offerings that are integral to many companies across the globe. As they push for greater cloud uptake, this will only increase margins and thus profitability. Being a European multinational software firm could mean that it has a better position in regards to the current...
P.S. Investments on Seeking Alpha | September 26, 2020
SAP users should deploy the patches for Adaptive Server Enterprise (ASE) released last month because the server fails to clear credentials from persistent installation logs. Even though the credentials are encrypted or hashed, researchers warn that attackers can easily decrypt them to gain full access to a sensitive monitoring component. [ Keep up with 8 hot cyber security trends (and 4 going cold) . Give your career a boost with top security certifications: Who they're for, what they cost, and which you need . | Sign up for CSO newsletters . ] Previously known as Sybase SQL Server, the SAP Adaptive Server Enterprise (ASE) is a high-performance relational database with on-premise and cloud deployment options. The product is used by over 30,000 organizations worldwide, including over 90%...
SHANGHAI, Sept. 24, 2020 /PRNewswire/ -- At HUAWEI CONNECT 2020, Huawei has released the FusionServer Pro V6 SAP HANA solution. Guests from SAP, Intel, and SUSE have attended the launch event and delivered speeches on their innovative journey with Huawei throughout the years, as well as…
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