Corporate Finance Toolkit – SAP SE
This section presents my Investment Banking Core Toolkit through a full valuation and strategic analysis of SAP SE, Europe’s largest software company. Across five projects – from an Overview, DCF, and Trading Comparables, to M&A Deal Commentary and an Equity Story synthesis – I demonstrate the ability to model cash flows, benchmark valuations, analyze acquisitions, and synthesise key findings. Together, these deliverables reflect the key analytical skills expected from junior investment bankers.
1. Company Overview
A concise profile of SAP, covering its three main business segments (ERP, Cloud, Business Technology Platform), key financials (revenue ~€30bn, EBIT margin ~30%, recurring revenue share >85%), and its strategic focus on cloud transformation, AI integration, and operational efficiency.
Deliverable: 1-page overview with most important information and financial snapshots
2. Discounted Cash Flow (DCF)
A 5-year forecast model of revenue, EBIT, and unlevered Free Cash Flow (FCF), combined with a WACC calculation based on CAPM and a terminal value using the Gordon Growth method.
Deliverable: Valuation table with FCF and waterfall value vizualization
3. Trading Comparables
A peer benchmarking exercise against Oracle, Microsoft, Salesforce, Workday, and Snowflake, using EV/EBITDA as well as EV/Revenue as multiples. The analysis shows where SAP stands relative to global software leaders in terms of valuation positioning.
Deliverable: Comp table with average, median, low, high and percentile values
4. M&A Deal Commentary (SAP Acquisitions)
A focused commentary on SAP’s recent acquisitions, including WalkMe (2024), LeanIX (2023), and Taulia (2022). Each deal is reviewed for deal value, financial data, and strategic fit, with emphasis on how they support SAP’s cloud transition.
Deliverable: 1-page M&A commentary with deal overview
5. Equity Story & Synthesis
A final synthesis that consolidates insights from the overview, DCF model, comparables and M&A commentary into one coherent equity story. The conclusion frames SAP as a defensive European technology champion, supported by cloud adoption, margin expansion, and a high share of recurring revenues.
Deliverable: Final summary slide linking methods and conclusions