SAP: Exaggerated response

SAP is one of the world's leading providers of business software solutions that organize various processes within companies and across company boundaries. The portfolio includes business applications for large and medium-sized companies as well as standard solutions for small and medium-sized enterprises. In addition, SAP supports core processes in the retail, finance, high-tech, healthcare and public administration sectors with industry-specific solutions. The Group's flagship product is the SAP Business Suite, which can be tailored precisely to the respective requirements and business objectives. This application is based on the HANA database technology developed by SAP, in which data is no longer stored on the hard disk but in the main memory and is therefore available more quickly. SAP's competitors include Adobe, BMC Software, Bechtle, HP, IBM, Microsoft, Oracle, PSI Software, SUSE, Salesforce and Software AG.

www.sap.com

We have been following SAP's latest financial figures closely and have to conclude that the market reaction appears to be clearly exaggerated. The German software manufacturer has lost more than 37% of its value in recent months, which is hardly understandable given the results presented and current market conditions. The share price slide is largely due to concerns over declining sales during the cloud transition - a process in which SAP is clearly facing some challenges at the moment. Nevertheless, our analysis shows that the company maintains a solid base in terms of dividends, earnings and sales growth.

In line with Elliott Wave Theory, the current situation could represent an interesting entry level for investors.