5 Most Valuable Companies in Europe

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In this article we discuss the 5 most valuable companies in Europe. If you want to read our detailed analysis of these European companies, go directly to the 10 Most Valuable Companies in Europe.

5. SAP SE (NYSE:SAP)

Market Cap: $170 billion
Revenue: $32.26 billion

SAP SE (NYSE:SAP) is one of the largest software companies in the world with a market cap of over $170 billion.

Based in Waldorf, Germany, SAP is on the forefront of creating the largest business network in the world which brings together different intelligence networks and cloud-based operations. This business network is expected to benefit over 5.5 million organizations in the world. The German enterprise software company has won some influential customers such as Unilever, IKEA, BMW, AstraZeneca, Toshiba, and Nippon Express.

SAP SE (NYSE:SAP) reported a total revenue of $7.65 billion for the first quarter of fiscal 2021 with an EPS of $1.69 representing a 63% year-over-year increase. Its cloud and software segment, which forms 85.5% of the company’s total revenue, achieved a 1% revenue growth.

SAP SE (NYSE:SAP) has been highlighted by an investment management firm called Vulcan Value Partners in its Q1 2021 investor letter. Here is what the fund said:

SAP SE is a global software provider known for its strength in enterprise resource planning (ERP) systems. The company’s installations are highly customized, deeply entrenched, and extremely difficult to replace. SAP is one of the largest companies in the world that provides a broad range of enterprise solutions through the Cloud and on-premise. Its committed customer base provides a runway for long-term growth and robust free cash flow production. SAP has begun the migration of its customer base to the Cloud. This transition will take time and depress its short-term revenue growth; however, the Cloud improves its long-term prospects and competitive positioning. We believe margins and revenue will increase as the company builds scale in the Cloud. The company lowered guidance for the next couple of years as they make the transition, the market reacted negatively, and the stock price declined. With a stable value and an attractive margin of safety, we are pleased to have an opportunity to own SAP in the portfolio.”


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