Added to YB: 2026-07-23
Pitch date: 2026-07-21
SAP [bullish]
SAP SE
-2.93%
current return
Author Info
No bio for this author
Company Info
SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide.
Market Cap
EUR 159.3B
Pitch Price
EUR 136.02
Price Target
N/A
Dividend
1.83%
EV/EBITDA
13.27
P/E
21.86
EV/Sales
4.22
Sector
Software
Category
value
Chris Hohn Gave Up on This Stock After a Year. I Think He's Wrong. - $SAP
SAP: World-leading ERP w/ 97% retention, ~10% CAGR op earnings/decade, huge switching costs. Cloud migration (60% base yet to convert) = 2x rev multiplier, multiyear tailwind. TCI's Hohn exited on AI/seat-compression fears, but shift to usage-based pricing (65% cloud rev) insulates. Bear: token spend competes for finite IT budget, poor Joule adoption (3% users). ~17x fwd P/E, ~100% FCF conversion, ~7% FCF yield; double-digit compounder worth owning.
Read full article (8 min)