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Is this Large Market Cap Stock target price reasonable for SAP SE (NYSE:SAP)?

The company in question is, SAP SE (NYSE:SAP) currently with a stock price of 87.88 (0.02% today). The market cap for SAP SE is 108745.2, and is in the sector Technology, and Application Software industry. The target price for SAP SE is 89. Currently SAP SE is trading with a P/E of 26.54, and a forward P/E of 17.88. Average volume for SAP SE is 1137.45 and so far today it is 217519.

Performance in the last year for SAP SE has been 28.09%. For EPS growth, SAP SE has seen a growth of -6.70%, and is looking to grow in the next year to 13.09%. More long term stats show that EPS growth has been 10.90% over the last five years and could be 12.56% for the next five years. SAP SE has seen sales growth quarter over quarter at -47.30%, with EPS growth quarter over quarter at -13.40%. The 20-day simple moving average is 8.48%, with the 200-day simple moving average coming to 12.24%.

Since the IPO date for SAP SE on the 9/18/1995, SAP SE has seen performance year to date to be 12.96%. With SAP SE trading at 87.88, the dividend yield is 1.49%, and the EPS is 3.31.

So could SAP SE, be undervalued? Well as said before P/E is 26.54. The PEG is 2.11, P/S is 4.59 and the P/B is at 4.12. The P/cash is 21.27, with P/free cash flow at 32.35.

SAP SE ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 1.2. This is with long term debt/equity at 0.38, and total debt/equity at 0.39.

In terms of margins, SAP SE has a gross margin of 70.30%, an operating margin of 23.50% and a profit margin of 16.80%.Payout ratio for SAP SE is 37.80%. Return on assets come to 8.60% with return on investment coming to 10.20%.

Insider ownership for SAP SE, is at 25.50% and institutional ownership comes to 3.50%. Outstanding shares are at 1237.71. While shares float is 965.27. The float short is currently 0.60%, and short ratio is 5.05.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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