SAPGF - SAP: Incredible Performance Terrible Price

2024-05-26 23:51:41 ET

Summary

• SAP stock has risen 30% YTD and 50% over the past year, outperforming the S&P 500 and other tech peers.
• Investors are enthusiastic about SAP's cloud offerings, particularly SAP Rise and SAP Grow, and its plans to transform its workforce through AI.
• However, with a P/E ratio of ~30x FY25 earnings, the stock is quite expensive and may not have much room for further growth.

The uncomfortable reality that investors have to deal with today: stocks are incredibly expensive, but even amid persistently high interest rates, we seemingly have few alternatives other than to continue pumping money into stocks, particularly tech stocks....

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