SAP SE (SAP): A Bull Case Theory

We came crossed a bullish thesis connected SAP SE connected Cas and DualEdge Invest’s Substack. In this article, we volition summarize the bulls’ thesis connected SAP. SAP SE's stock was trading astatine $241.75 arsenic of November 28th. SAP’s trailing and guardant P/E were 34.56 and 28.49 respectively according to Yahoo Finance.

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SAP, Europe’s largest bundle institution by marketplace capitalization astatine ~€288 billion, has transformed from a bequest licensing titan into a subscription-driven, cloud-first enterprise, reshaping however investors worth its business. The company’s exemplary present revolves astir 3 self-reinforcing loops: recurring licensing revenue, post-implementation support, and consulting/R&D, creating heavy lawsuit dependency and predictable currency flows.

At the halfway of this translation is RISE with SAP, its dual-path S/4HANA Cloud migration program, offering some nationalist and backstage unreality options. This architecture allows SAP to seizure some agility and control, appealing to planetary enterprises seeking standardized processes oregon flexible customization. The results are tangible: astir 85% of gross is recurring, unreality gross is connected way to scope €21.6–21.9 billion, and margins stay robust astatine 26.5%.

SAP operates successful a €60–75 cardinal ERP marketplace dominated by precocious switching costs, wherever Microsoft Dynamics 365, Oracle, and Sage compete, but nary lucifer SAP’s scale, integration depth, oregon lock-in. Each S/4HANA migration further entrenches the company, embedding its level arsenic the operational halfway of clients’ businesses. This lock-in not lone drives recurring gross but besides positions SAP arsenic the backbone for AI and data-driven transformations, turning bundle into infrastructure and infrastructure into annuity.

For investors, the communicative is not a flashy disruption but a re-rating opportunity. SAP’s predictable currency flows, beardown pricing power, and lawsuit stickiness warrant its premium valuation. As enterprises progressively modernize and integrate AI, SAP’s unreality and recurring gross exemplary connection enduring stableness and semipermanent growth. The institution present sells continuity, transformation, and operational resilience, making it a softly ascendant and strategically indispensable subordinate successful endeavor software.

This positions SAP arsenic Europe’s astir almighty bundle story, with aggregate levers for worth instauration and constricted downside fixed its entrenched ecosystem and structural advantages.

Previously we covered a bullish thesis connected SAP SE (SAP) by FluentInQuality successful May 2025, which highlighted the company’s heavy endeavor integration, pivot to cloud-first S/4HANA operations, precocious lawsuit stickiness, recurring revenue, and strategical AI deployment. The company's banal terms has depreciated astir by 17.36% since our coverage. The thesis inactive stands, and Cas and DualEdge Invest stock a akin but emphasizes ERP marketplace context, RISE with SAP, and re-rating potential.