Forecast Of The Day: SAP’s Cloud Subscriptions And Support Revenue

-12.43%
Downside
192
Market
168
Trefis
SAP: SAP logo
SAP
SAP

What?

SAP’s cloud subscriptions and support revenue rose from $7.7 billion in 2019 to $10.6 billion in 2021. Trefis expects the metric to grow to about $14 billion by 2023.

Why?

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We expect growth to be driven by an increasing pivot of SAP customers to its cloud offering. Moreover, the cloud-based model essentially bundles software with the back-end IT infrastructure and this could also help SAP capture more value.

So What?

We value SAP at $147 per share, about 60% ahead of the current market price.

See Our Complete Analysis For SAP

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

 Returns Jul 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 SAP Return 0% -35% 5%
 S&P 500 Return 1% -20% 71%
 Trefis Multi-Strategy Portfolio 3% -25% 200%

[1] Month-to-date and year-to-date as of 7/5/2022
[2] Cumulative total returns since the end of 2016

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