SAP Chief Puts a 15% US Listing Premium on the Table While Buybacks Roll On

Klein says a US headquarters would value SAP about 15% higher, urging less red tape, faster digitization and skilled immigration in Germany.

Christian Klein has handed investors a striking thought experiment: were SAP to relocate its headquarters to the United States, the market would value Europe's largest software maker roughly 15 percent higher. The CEO's remarks, delivered today, amount to one of the more candid assessments of the valuation gap between European and American tech listings — and they landed alongside a pointed intervention in Berlin's economic policy debate.

Rather than swapping out the chancellor, Klein argued, Germany needs a coherent vision for the future. The government must spell out and explain the reforms it intends to pursue, he said, or risk losing credibility altogether. His prescription centers on three levers: a serious reduction in red tape, faster digitization, and targeted immigration of skilled workers. He also floated loosening dismissal protections for high earners, contending that only predictable framework conditions will draw private capital back into the country.

Earnings Underpin the Pitch

The case for Germany as a business location is not merely rhetorical for SAP. Revenue for 2025 climbed 8 percent to EUR 36.8 billion, with net profit reaching EUR 7.5 billion — evidence, in Klein's telling, that the company is expanding operationally even in a difficult environment.

That operational momentum runs in parallel with an ongoing capital return program. Between September 14 and 18, SAP repurchased 50,000 of its own shares through the XETRA trading system, at a weighted average price of EUR 185.57 per share. The week's transactions totaled roughly EUR 9.28 million, excluding ancillary acquisition costs. The company bought in even tranches — exactly 10,000 shares on each of the five trading days. Since the program began, SAP has bought back a cumulative 8,305,886 shares.

Buybacks of this kind shrink the supply of stock in the market and, on paper, lift earnings per share. Market participants also read the steady cadence of purchases as a signal of balance-sheet strength, with the group deploying spare liquidity to shore up shareholder value even when the broader market is volatile.

A Friday Setback, but the Trend Holds

The stock nevertheless took a knock to close the week, shedding 1.9 percent to finish at EUR 183.00. Since the start of the year, the shares are down 13 percent. Over the medium term, though, the picture looks sturdier: the price sits 9.2 percent above its 200-day moving average of EUR 167.57. Whether the software group can defend that cushion will likely hinge on the impulses generated in the coming quarters.

On the operational front, management used Goldman Sachs' Communacopia conference on September 8 to reaffirm its medium-term plans, with the shift toward usage-based billing positioned as a central pillar of the cloud strategy. Customers gain more flexibility in scaling their systems, while SAP improves the predictability of future cash flows.

Analysts Split on the Upside

The analyst community remains constructive on the group's prospects. Berenberg confirmed its "Buy" rating yesterday, according to dpa-AFX, with a price target of EUR 205. UBS took a more cautious stance on September 8, assigning "Neutral" and a EUR 201 target. Both houses place fair value above the current quote. For investors, the key question is how quickly customers will actually implement new software solutions for business processes.

Insider Sales Tied to Share Plan

At the management level, SAP reported transactions on Monday under the MOVE SAP employee share program. Executives Muhammad Alam and Lars Lamade sold shares to cover personal taxes and levies. Such disposals to meet tax obligations are routine with equity-based compensation and offer no insight into the operating business.