One of Europe's Most Important Tech Stocks Is Finally Winning Over US Investors
- Shares are up 42% this year, sending valuation above sector
- German firm’s US investor base has grown to near-record high
Photographer: Aparna Jayakumar/Bloomberg
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Germany’s SAP SE has long been one of Europe’s most important tech stocks. But it’s now winning more US investor interest — and shaking off a long history of trading at a discount to peers.
After a 42% rally this year, SAP trades at about 34 times forward earnings, giving it a valuation above an MSCI index of US software and IT services firms for the first time since 2018. SAP has also cemented its valuation premium over US peers including Salesforce Inc. and Oracle Corp., with investors impressed by its success in shifting customers to more lucrative cloud-based products.