From Morningstar: 2025-03-28 05:58:00

German software giant SAP has surpassed Novo Nordisk as Europe’s largest company, with a nearly 40% increase in share price over the past year. Transition to cloud services has driven this growth, resulting in high returns for investors. Despite this success, SAP is currently trading below its fair value estimate of 265 euros. Morningstar metrics indicate that SAP is currently undervalued, making it a potentially attractive investment opportunity. Previous concerns about customer loss have been alleviated, with 80% of legacy customers now committed to SAP’s upgraded enterprise resource planning system. Morningstar analysts have revised their outlook on SAP, citing improved capital allocation and strong cloud product development as driving factors.



Read more at Morningstar: Stock Of The Week: How Has SAP Become Europe’s…