SAP: Multiple Contraction In 2025 Appears Likely
Portfolio Pulse from
SAP reported strong Q4 and fiscal year 2024 results, but the market remains unimpressed. The stock's premium has increased, and expected growth and profitability improvements do not justify the recent multiple repricing.
January 30, 2025 | 11:15 am
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SAP's strong Q4 and FY 2024 results have not impressed the market, leading to concerns about the stock's high premium. The expected growth and profitability improvements are insufficient to justify the recent multiple repricing.
Despite delivering strong financial results, SAP's stock is trading at a high premium, which has increased recently. The market is not convinced that the expected growth and profitability improvements justify this premium, suggesting potential downward pressure on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100