SAP CFO Sees Qualtrics IPO as Cue to ReRate Own Valuation

BERLIN, Jan 29 Reuters SAP hailed the U.S. stock market listing of its Qualtrics unit, saying that investors should take it as a cue to reconsider whether its own share price fairly reflected the value of its cloud assets.

Shares of Qualtrics jumped nearly 40 on Thursday in their Nasdaq debut, valuing the firm at nearly 21 billion, against the backdrop of a capital market frenzy that has seen investors flock to technology stocks.

CFO Luka Mucic said applying the same sales multiple to SAPs software and platform service revenues of 5.5 billion would account for its entire market capitalisation of 133 billion without even considering the rest of the business.

I do think there is an opportunity here to reconsider the valuation of SAP, Mucic told journalists on a conference call as SAP reported fourthquarter results in line with preliminary figures released on Jan. 14.

Reporting by Douglas Busvine; editing by Thomas Seythal

Source Reuters

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