SAP Q2 2026 Results: Fair Value, DCF and upside potential reviewed | Is SAP Still Undervalued?
SAP released its Q2 2026 earnings on July 23rd, and the results provide an important update to the investment thesis discussed in our previous SAP analysis.
In this video, we review the latest earnings report, cloud growth metrics, free cash flow performance, AI strategy developments, profitability trends, and management guidance. Most importantly, we update the valuation model and recalculate SAP's intrinsic value based on the latest available information.
Key topics covered:
✅ SAP Q2 2026 earnings review
✅ Cloud revenue growth and backlog analysis
✅ AI strategy and Business Data Cloud update
✅ Free cash flow performance and guidance
✅ Margin trends and operating profit outlook
✅ Updated P/E valuation
✅ Revised Discounted Cash Flow (DCF) model
✅ New fair value estimate: €226 per share
✅ Updated max buy price: €204 per share
✅ Bull, Base and Bear case scenarios
✅ Expected returns and CAGR analysis
While SAP's cloud transition continues to perform exceptionally well, investors are increasingly focused on profitability and margin expansion. We discuss what has improved, what remains uncertain, and whether SAP still offers an attractive risk/reward profile after the recent share price recovery.
If you enjoy long-term investing, valuation analysis, and high-quality compounder stocks, make sure to subscribe for future deep dives.
VIDEO CHAPTERS
00:00 Intro
01:13 Q2-2026 Results: Cloud Growth, FCF & Margins
06:04 Relative Valuation: P/E Multiples
06:31 Intrinsic Value: DCF Model & Fair Value
08:08 Target Prices: Bear, Base & Bull Cases
09:04 Conclusion: Undervalued
⚠️ Disclaimer: This video is for educational and informational purposes only and should not be considered investment advice. Always conduct your own research before making investment decisions.
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