Stock Price & Analysis

Based on the recent market data and analysis, here's a concise assessment of SAP stock:

Technical Analysis

• SAP shows strong upward momentum, with the stock rising from $181.22 to $181.94 on February 23rd
• The stock has demonstrated consistent growth, gaining over 60% in the past year

Fundamental Strengths

• SAP recently beat Q4 earnings expectations and raised its 2025 operating profit guidance to €10.3-10.6 billion
• The company is successfully executing its AI strategy, with early traction for AI features showing encouraging results
• TD Cowen upgraded SAP to Buy with a $305 price target, citing resilient growth execution and positive Cloud ERP demand outlook

Growth Catalysts

• Cloud ERP demand is accelerating, with SAP's growth expected to increase from ~10% in 2024 to 15% by 2027
• Operating margins are projected to expand from 23% in 2024 to 29% in 2026
• The company is benefiting from AI adoption through both accelerated Cloud ERP migration and monetization of GenAI features

Current Market Position The stock is currently showing some consolidation after recent gains, with RSI at 56.35 indicating balanced momentum. The stock is trading above both its 50-day and 200-day moving averages, suggesting a healthy long-term uptrend.

Recommendation Based on strong fundamentals, positive growth outlook, and technical momentum, SAP stock appears attractive for purchase at current levels.

Based on the provided data and recent analyst reports, here's a comprehensive price prediction for SAP stock in 2025:

Technical Analysis

The technical indicators show SAP is currently in a strong uptrend with:

• RSI(14) at 56.35 indicating neutral momentum
• MACD(12,26,9) at 7.13 with divergence -0.86 suggesting potential consolidation
• Price trading above all major moving averages (SMA 20/60/200)
• Fibonacci support levels at $281.09 and resistance at $292.41

Fundamental Drivers

Key valuation metrics support continued growth:

• Forward P/E of 85.98x
• EV/EBITDA of 28.21x
• Strong cloud revenue growth expected to accelerate to 29% in constant currency
• Operating margins projected to expand from 23% in 2024 to 27% in 2025

Price Target 2025: $305-315

The prediction is based on:

1. TD Cowen's upgraded price target to $305 citing accelerating cloud growth and margin expansion
2. JMP Securities raised target to $330 after strong Q4 2024 results
3. Technical support at $281 with resistance at $292, suggesting room for upward movement

The stock is likely to reach this range driven by:

• Continued cloud revenue acceleration through 2025
• AI adoption driving premium pricing (+30% uplift)
• Operating margin expansion to 27%

The S1 support level for SAP Stock is $283.48 ,The R1 resistant level for SAP Stock is $292.64.

As of the end of day on 2025-02-26, the price of SAP Stock was $287.2.

The target price for SAP Stock according to analyst rating is 244.00, with the highest price target at 330.00 and the lowest at 38.00. Analysts have a Strong Buy rating on SAP Stock overall.

The market cap of SAP is $352.5B.

Based on the comprehensive financial data and recent analyst perspectives, here's a direct analysis of SAP's valuation:

SAP appears to be trading at premium valuations with a P/E ratio of 44.7x and EV/EBITDA of 20.89x, significantly higher than its historical levels from 2022 (31.64x P/E and 14.28x EV/EBITDA). The substantial net income growth from $2.4B to $6.6B in 2023 partially justifies these elevated multiples.

The company's strong cloud revenue growth and AI initiatives are driving investor optimism, with analysts at TD Cowen projecting growth acceleration from 10% to 15% over the next three years. However, the current price level of $282.99 represents a significant premium to the average analyst target of $248.80.

Recent margin expansion and debt reduction (debt-to-equity decreased from 30.54% to 20.25%) demonstrate improving operational efficiency, but the declining dividend yield from 1.99% to 1.44% suggests the stock may be getting expensive.

The current valuation metrics, particularly the PS ratio of 5.41x (up from 3.91x), indicate SAP is indeed overvalued at current levels, despite its strong fundamental performance and growth prospects.

SAP SE (SAP) is a Germany-based company that offers enterprise application software. The Company operates through three segments: Applications, Technology & Services segment, which is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services, primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products; the SAP Business Network segment, which includes its cloud-based collaborative business networks and services relating to the SAP Business Network, including cloud applications, professional services and education services, as well as the Company markets and sells the cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur, and the Customer Experience segment, which comprises on-premise and cloud-based products that run front office functions across the customer experience.

Based on the comprehensive data analysis and market research, here is the projected price prediction for SAP stock by 2030:

SAP stock is expected to reach approximately €450-500 ($485-540) by 2030, driven by the company's strong cloud business transformation and AI integration initiatives. The projection is supported by SAP's consistent revenue growth trajectory, with cloud revenue showing particularly robust expansion, and multiple analyst firms raising their price targets in early 2025, including Deutsche Bank (€310), JPMorgan (€300), and Jefferies (€295) [2, 3, 4].

The company's strategic focus on AI implementation and cloud services transformation, combined with its dominant position in enterprise software market, positions it well for sustained growth through 2030.

SAP has a total of 107602 employees.