u/Fair_Attorney_1988 ·
Reddit — r/ValueInvesting
· June 12, 2026 at 21:56
· ⬆ 15 pts
· 💬 19 comments
| View on Reddit ↗
AI Summary
Summary
The author evaluates SAP SE as a potential value investment, citing a strong moat, recurring revenue, high switching costs, consistent FCF, and a recent pullback.
They also argue that SAP is a strategic national asset for Germany, reducing the likelihood of irrelevance, which adds a qualitative cushion.
Quality assessment: Moderately well-reasoned DD with qualitative and quantitative factors, but lacking deep financial metrics or valuation multiples; leans toward speculative value thesis.
Score15
Comments19
Upvote %100%
▶ Full Post Text
I’ve been looking at SAP SE and trying to evaluate it from a value investing perspective:
\-Strong moat
\-Enterprise software deeply embedded in customers’ operations
\-Recurring revenue
\-High switching costs
\-Strong balance sheet
\-Consistent free cash flow
The stock has also pulled back from previous highs, while the underlying business still appears to be growing.
One thing that makes me more confident is that SAP is arguably Germany’s most important technology company. Germany has very few global tech champions, and SAP is a strategic national asset. I don’t mean that the government would literally bail out shareholders, but it’s hard for me to imagine Germany allowing one of its crown-jewel companies to become irrelevant.