8Mon·

What are the investment theses why you should $SAP (+0.48%) should buy now? P/E ratio of currently approx. 100, which should fall to 31 by 2026. Sales are growing at around 8-10% p.a. but in my opinion this does not justify such a high valuation. I haven't really looked into the company, but the valuation seems very unattractive to me. Or am I missing something here?

7 Comments

Kevin E.@KevinE

8Mon

I wouldn't get in at the moment either. But I'm also quite happy with it, as my position is now up ~120%.
But I also see little potential in the medium term.

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Pragmaktisch@Pragmaktisch

8Mon

@KevinE Wouldn't selling damn be more consistent?

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Kevin E.@KevinE

8Mon

@Pragmaktisch don't see many opportunities elsewhere at the moment. I would have to pay a four-figure sum in taxes. In the long term, I also remain confident that SAP will be able to increase its profits.

If there was a 401k system like in the USA (tax-free redeployment), I would almost certainly make use of it.

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MrMister@MrMister

8Mon

The competition is far too great. However, most of the competitors are not stock corporations. SAP has only 22% of the total ERP market. Far too risky for a P/E ratio of 100.

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Imvestment4Life@Investment4Life

8Mon

@MrMister I work in the industry and would like to ask: WHO is SAP's competitor?
Market share of 22% of the ERP market is correct. But SAP has a virtual monopoly in companies with > 1 €/$ billion turnover!

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FrancoJrG@OGREDAISFonds

8Mon

@Investment4Life Oracle or not?

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MrMister@MrMister

8Mon

@Investment4Life If you work in the industry, as I did as a product manager, you are probably aware that SAP has major challenges with industry solutions. Industry solutions for SAP mean much higher costs for customers. Mechanical engineering, special machine construction, sheet metal modeling and especially in medium-sized companies, SAP is rather mediocre. It's ok for standards in large corporations, but it's definitely not the best. And yes, Oracle and Sage are also among the big SAP competitors, and I'm not talking about Cobus Concept or the like.

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