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Nov 12, 2018
SAP SE (SAP, $108.31) to Acquire IPO-Ready Qualtrics

SAP SE (SAP, $108.31) to Acquire IPO-Ready Qualtrics

The German-based European multinational software corporation, SAP SE, in an official statement on Sunday declared that it is set to acquire the survey software company, Qualtrics, for $8 billion.

This deal, the second highest acquisition in the history of SAP (after the $8.3 billion acquisition of travel and expense software company Concur in 2014), would be an all all-cash deal and has been approved by the boards of both companies and also by Qualtrics shareholders.

Qualtrics, which competes with SurveyMonkey, is a bigger and more profitable organization compared to Survey Monkey and has been growing at a faster rate.  Founded in 2002, it reported a revenue growth of 41.7% to $184.2 million in the first-half of 2018. With this deal, SAP now has access to a 1900+ strong workforce of Qualtrics along with its more than 9,000 customers.

The SAP deal follows another major blockbuster software deal with the IBM (IBM, $123.54) acquisition of Red Hat (RHT, $173.75). SAP’s revenue growth prospects for the year have been revised by the company to a range of 7.5% to 8.5% - up from the prior range of 6% to 7.5%.

Related Ticker: SAP

SAP's Indicator enters downward trend

The Aroon Indicator for SAP entered a downward trend on October 05, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 175 similar instances where the Aroon Indicator formed such a pattern. In 110 of the 175 cases the stock moved lower. This puts the odds of a downward move at 63%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for SAP moved out of overbought territory on September 01, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 16 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 44%.

The Momentum Indicator moved below the 0 level on September 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SAP as a result. In 50 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where SAP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.

Bullish Trend Analysis

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 32 of 55 cases where SAP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 58%.

The 50-day moving average for SAP moved above the 200-day moving average on September 17, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.

Following a +5.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where SAP advanced for three days, in 179 of 322 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of 14 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.746) is normal, around the industry mean (51.456). P/E Ratio (27.540) is within average values for comparable stocks, (82.636). Projected Growth (PEG Ratio) (1.610) is also within normal values, averaging (3.135). Dividend Yield (0.014) settles around the average of (0.011) among similar stocks. P/S Ratio (5.653) is also within normal values, averaging (69.875).

The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. SAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 49 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 72 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.

The Tickeron PE Growth Rating for this company is 80 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

Notable companies

The most notable companies in this group are Salesforce (NYSE:CRM), Shopify Inc (NASDAQ:SHOP), Uber Technologies (NYSE:UBER), ServiceNow Inc. (NYSE:NOW), Datadog (NASDAQ:DDOG), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Workday (NASDAQ:WDAY), Atlassian Corp (NASDAQ:TEAM), Autodesk (NASDAQ:ADSK).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 9.9B. The market cap for tickers in the group ranges from 39 to 244.09B. SAPGF holds the highest valuation in this group at 244.09B. The lowest valued company is STIXF at 39.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was 1%. For the same Industry, the average monthly price growth was -5%, and the average quarterly price growth was 9%. RPGL experienced the highest price growth at 180%, while WCT experienced the biggest fall at -87%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was -45%. For the same stocks of the Industry, the average monthly volume growth was 20% and the average quarterly volume growth was -37%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 76
Price Growth Rating: 59
SMR Rating: 77
Profit Risk Rating: 94
Seasonality Score: 6 (-100 ... +100)
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General Information

a provider of e-business software solutions

Industry PackagedSoftware

Industry
Packaged Software
Address
Dietmar-Hopp-Allee 16
Phone
+49 6227747474
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111397
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https://www.sap.com
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SAP SE (SAP, $108.31) to Acquire IPO-Ready Qualtrics