S A P Gross Profit vs. Price To Book

SAP Stock  USD 247.90  2.21  0.90%   
Considering S A P's profitability and operating efficiency indicators, S A P's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess S A P's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1999-03-31
Previous Quarter
B
Current Value
6.2 B
Quarterly Volatility
1.7 B
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, S A P's Price To Sales Ratio is relatively stable compared to the past year. As of 12/24/2024, Days Sales Outstanding is likely to grow to 113.27, while Sales General And Administrative To Revenue is likely to drop 0.04. At this time, S A P's Net Income Per E B T is relatively stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.550.7243
Way Down
Slightly volatile
Net Profit Margin0.130.1967
Way Down
Slightly volatile
Operating Profit Margin0.150.1854
Significantly Down
Slightly volatile
Pretax Profit Margin0.250.1711
Way Up
Slightly volatile
Return On Assets0.130.0898
Way Up
Slightly volatile
Return On Equity0.230.1422
Way Up
Slightly volatile
For S A P profitability analysis, we use financial ratios and fundamental drivers that measure the ability of S A P to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SAP SE ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between S A P's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SAP SE ADR over time as well as its relative position and ranking within its peers.
  
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of S A P. If investors know SAP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about S A P listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.148
Dividend Share
2.2
Earnings Share
2.43
Revenue Per Share
28.524
Quarterly Revenue Growth
0.094
The market value of SAP SE ADR is measured differently than its book value, which is the value of SAP that is recorded on the company's balance sheet. Investors also form their own opinion of S A P's value that differs from its market value or its book value, called intrinsic value, which is S A P's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because S A P's market value can be influenced by many factors that don't directly affect S A P's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between S A P's value and its price as these two are different measures arrived at by different means. Investors typically determine if S A P is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, S A P's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

SAP SE ADR Price To Book vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining S A P's current stock value. Our valuation model uses many indicators to compare S A P value to that of its competitors to determine the firm's financial worth.
SAP SE ADR is rated second in gross profit category among its peers. It is rated below average in price to book category among its peers . The ratio of Gross Profit to Price To Book for SAP SE ADR is about  3,315,285,672 . At this time, S A P's Gross Profit is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value S A P by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

SAP Price To Book vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

S A P

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
22.17 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

S A P

P/B

 = 

MV Per Share

BV Per Share

 = 
6.69 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

SAP Price To Book Comparison

S A P is currently under evaluation in price to book category among its peers.

S A P Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in S A P, profitability is also one of the essential criteria for including it into their portfolios because, without profit, S A P will eventually generate negative long term returns. The profitability progress is the general direction of S A P's change in net profit over the period of time. It can combine multiple indicators of S A P, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income2.4 B2.5 B
Operating Income5.8 B3.3 B
Income Before Tax5.3 B3.5 B
Total Other Income Expense Net-446 M-423.7 M
Net IncomeB6.3 B
Income Tax Expense1.7 BB
Net Income Applicable To Common Shares2.6 B3.2 B
Net Income From Continuing Ops1.6 B2.9 B
Interest Income710 M680.9 M
Net Interest Income-1.2 B-1.2 B
Change To Netincome1.9 BB
Net Income Per Share 5.26  5.52 
Income Quality 1.06  1.08 
Net Income Per E B T 1.15  1.21 

SAP Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on S A P. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of S A P position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the S A P's important profitability drivers and their relationship over time.

Use S A P in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if S A P position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in S A P will appreciate offsetting losses from the drop in the long position's value.

S A P Pair Trading

SAP SE ADR Pair Trading Analysis

The ability to find closely correlated positions to S A P could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace S A P when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back S A P - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SAP SE ADR to buy it.
The correlation of S A P is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as S A P moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SAP SE ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for S A P can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your S A P position

In addition to having S A P in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Cars Thematic Idea Now

Cars
Cars Theme
Domestic and international companies involved in manufacturing and serving automobiles and trucks. The Cars theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cars Theme or any other thematic opportunities.
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Additional Tools for SAP Stock Analysis

When running S A P's price analysis, check to measure S A P's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy S A P is operating at the current time. Most of S A P's value examination focuses on studying past and present price action to predict the probability of S A P's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move S A P's price. Additionally, you may evaluate how the addition of S A P to your portfolios can decrease your overall portfolio volatility.