Great analysis! SAP is so deeply embedded in critical operating systems it is hard to replace without significant risk to supply chain failure. At these prices it's a no brainer!
Your SAP DCF treats leases as financing obligations and builds FCFF in euros before converting through the ADR — I don't see many people handle a European filing that carefully. When you take on a name like that, how much of the time is just getting the statements into a shape you can model, versus the actual judgment calls?
I'm fairly new to doing this seriously. I've built a few tools to help with my own analysis — they've genuinely helped, and I think they could be useful to other investors too. But there are gaps I keep hitting, and before I take it any further I want to properly understand how people who really do this work through the process.
Not really sure this works....the moat is depleting and ai-native ERPs will crush SAP...acquisition plays have been weak and they are weak in post merger integrations - just see how they destroyed Signavio's PMF
Really like the Damodaran style of your DCF ! ;)
Keep it like this ! 👍
For SAP I really wonder if they will be able to increase margins from there.
Why, thank you! That's such a kind comment :) and yes, it'll be crucial for the company, successful transition & margin growth. :)
Great analysis! SAP is so deeply embedded in critical operating systems it is hard to replace without significant risk to supply chain failure. At these prices it's a no brainer!
Thank you very much Mr Robot! While there are risks, I generally agree with you! Fundamental analysis coming soon :)
Hi,
Your SAP DCF treats leases as financing obligations and builds FCFF in euros before converting through the ADR — I don't see many people handle a European filing that carefully. When you take on a name like that, how much of the time is just getting the statements into a shape you can model, versus the actual judgment calls?
I'm fairly new to doing this seriously. I've built a few tools to help with my own analysis — they've genuinely helped, and I think they could be useful to other investors too. But there are gaps I keep hitting, and before I take it any further I want to properly understand how people who really do this work through the process.
Great work, thank you!
I can learn much here.
Last days i read an EU dispute over US cloud services. Maybe that could affect SAP‘s growth or share price in the near term.
Not really sure this works....the moat is depleting and ai-native ERPs will crush SAP...acquisition plays have been weak and they are weak in post merger integrations - just see how they destroyed Signavio's PMF