SAP in Abundant Supply
SAP is a global provider of enterprise application software used for accounting,
customer relationship management and supply chain management.
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We like the fact that SAP is trading at one of the lowest valuations in the last 19 years.
Their growing profits, rising dividend and low debt level cause us to think that there is a good chance that the shares will again trade at a higher valuation.
Purple Chips 12 -18 month target: $USD 81.00
LOW VALUATION IN SAP AT $65.86 (SAP-US, $65.68) FULL POSITION
PURPLE CHIPS TARGET: $81.00 POSITION SIZE: FULL (5.0) P/E: 15.8X DIV: $1.36 (2.07%) MKT CAP: $78B DEBT: $700M RETURN ON CAPITAL: 179.2% EARNINGS YIELD: 7.8% 5 YR EPS Growth rate*:8.5% P/E/G Ratio: 1.78 EPS: $4.16 2015 EST.: $3.80 2016 EST.: $4.12
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
