Forecast Of The Day: SAP’s Cloud Subscriptions And Support Revenue
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?
- Flush With Cash Following Qualtrics Deal, Is SAP Stock A Buy?
- With Enterprise Spending Slowing, Is SAP Stock Still A Good Buy?
- Up 29% Over The Past Month, What’s Next For SAP Stock?
- Where Is SAP Stock Headed Following Q2 Results?
- SAP’s Q1 Results Were Mixed, But The Stock Still Looks Like A Buy
- Should You Buy The Decline In SAP Stock?
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
See all Trefis Price Estimates