SAP SE is to continue to go ballistic in December
 | By Rifka Kats | Macroaxis Story |
The firm current daily volatility is 1.96 percent, with beta of -0.03 and alpha of 0.17 over Russell 2000 . Macroaxis considers SAP SE very steady given 1 month investment horizon. SAP SE ADR1 owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.1159 which indicates the company had 0.1159% of return per unit of standard deviation over the last 1 month. Our approach into measuring volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for SAP SE ADR1 O N which you can use to evaluate future volatility of the entity. Please operate SAP SE Risk Adjusted Performance of 0.1242, Downside Deviation of 1.7 and Market Risk Adjusted Performance of (4.91) to confirm if our risk estimates are consistent with your expectations.
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Reviewed by Raphi Shpitalnik
SAP SE has accumulated 16.44 B in total debt with debt to equity ratio (D/E) of 54.3 indicating the entity may have difficulties to generate enough cash to satisfy its financial obligations. The entity dividends can provide a clue to current valuation of the stock. SAP SE ADR1 one year expected dividend income is about €0.96 per share. Now, lets check SAP SE Price to Earning. Based on latest financial disclosure the price to earning indicator of SAP SE ADR1 O N is roughly 42.99 times. This is 55.31% higher than that of the Technology sector, and 25.61% lower than that of Software - Application industry, The Price to Earning for all stocks is 49.69% lower than SAP SE ADR1. SAP SE financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of SAP SE, including all of SAP SE's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of SAP SE assets, the company is considered highly leveraged. Understanding the composition and structure of overall SAP SE debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
How important is SAP SE's Liquidity
SAP SE financial leverage refers to using borrowed capital as a funding source to finance SAP SE ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SAP SE financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to SAP SE's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of SAP SE's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between SAP SE's total debt and its cash.
Going after SAP Financials
The latest bullish price patterns experienced by current SAP SE shareholders has created some momentum for investors as it was traded today as low as 122.0 and as high as 124.0 per share. The company directors and management have been very successful with rebalancing the entity components at opportune times to take advantage of market volatility in October. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.961. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. SAP SE retains price to sales of 5.67 . SAP SE is selling for under 122.00. That is 0.83 percent up. Started trading at 122.00. To summarize, our research shows that SAP SE is very steady with low odds of financial distress in the next two years. Our primary buy vs hold vs sell advice on the firm is Cautious Hold.
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