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:
We started the process of determining a valid price forecast for Sap Se with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sap Se ranked in the 11th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 89.17%. In terms of the factors that were most noteworthy in this DCF analysis for SAP, they are:
Its compound free cash flow growth rate, as measured over the past 4.95 years, is 0% -- higher than merely 24.17% of stocks in our DCF forecasting set.
As a business, SAP is generating more cash flow than 90.35% of positive cash flow stocks in the Technology.
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 just 5.55% 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
CASA, ON, SIMO, ELSE, and GLW can be thought of as valuation peers to SAP, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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SAN FRANCISCO--(BUSINESS WIRE)-- #Logistics--ClearMetal, a leader in Continuous Delivery Experience (CDX) for supply chain and logistics solutions, today announced that it has joined the SAP Logistics Business Network as an SAP partner for international shipment in-transit visibility data. Using ClearMetal’s platform, customers will be able to leverage the most trusted and accurate international freight data to improve on-time delivery, reduce logistics costs and optimize inventory. The addition of ClearMet