SAP SAP

Name: SAP Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 20, 2026

Price at analysis: $181.22

Crucible Score

64.8

B-

Quality × Value Composite

KQI — Quality

65.0

B-

Fundamental Quality Index

KVI — Value

64.5

C+

Valuation Attractiveness Index

Crucible Verdict — SAP

SAP earns a solid B- grade on strong diversification and financial quality, but management effectiveness remains the clear weak link under CEO Christian Klein's lengthy tenure. The stock trades at a 12% discount to fair value despite consistent earnings beats, suggesting the market hasn't fully embraced the enterprise software giant's transformation efforts. Execution improvements could unlock meaningful upside.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

79.4

Growth Profile

60.5

Moat Durability

70.5

Management Effectiveness⚠

42.6

Diversification & Resilience

81.2

Market Position

68.0

Weakest dimension: Management Effectiveness (42.6)

◆ KVI Value Dimensions

DCF Margin of Safety

63.5

FCF Yield & Cash Returns

47.8

Relative Valuation

63.5

Growth-Adjusted Value

76.0

Historical Valuation

86.4

Macro Context

69.6

◆ DCF Valuation Scenarios

Bear Case

$139.52

Base Case

$202.18

Bull Case

$289.74

Price at Analysis

$181.22

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$139.52	7.0%	26.0%	8.9%
🟢 Base	$202.18	10.0%	30.0%	8.5%
🟢 Bull	$289.74	13.0%	34.0%	8.1%

Key Assumptions: WACC derived using CAPM with 4.32% risk-free rate, 0.76 beta, and 5.5% ERP yielding ~8.5% base WACC, adjusted +/-40bps for bear/bull. Revenue growth anchored to 5-year CAGR of ~8% with SAP's cloud transition driving acceleration in base/bull cases. Operating margins reflect recovery from the 2023 trough (13.6%) toward the most recent 26.7%, with bear assuming competitive headwinds limit margin expansion while bull assumes full cloud-scale economics materialize. Tax rate normalized at 29.5% reflecting recent effective rates, and capex intensity held at ~2.2% of revenue consistent with asset-light software model.

◆ Financial Snapshot

Profitability

Gross Margin73.3%

Operating Margin27.0%

Net Margin19.9%

ROIC11.2%

ROE12.7%

Balance Sheet

Balance SheetCR: 1.17

Cash ConversionFCF/EPS: 1.14x

Capital IntensityCapex/Rev: 1.9%

Altman Z-Score6.35 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR8.1% CAGR

Earnings CAGR8.7% CAGR

Growth ConsistencyCV: 0.71

Segment Breadth1/2 growing (50%)

Quarterly TrendRev↘+3%, Margin↑, WC↓, Exp↓

Earnings CredibilityTends to Beat

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOChristian Klein · 7 years

CEO Ownership< 1%

Insider ActivityNeutral

Capital AllocationROIC 11.2% vs WACC 13.0%

Earnings Beat Rate66% (15/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 20, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.