Investment Idea #24

Another SAAS software giant after Adobe.

The stock we are discussing today is a Software-As-A-Service (SAAS) enterprise software giant which is mission critical to many global companies. It is also embracing A.I. and has tasked the above A.I. created “real person” avatar to deal with its investor relations.

Its numbers are as follows:

Simple Financials (Dec 2025-26 estimate, EUR)

• Sales: 35bn, 38bn

• Net income: 4bn, 6.4bn

• FCF: 8bn, 10bn

• Dividend: S$0.12, Yield: 4.5%

• Debt: Net Cash, Mkt Cap >300bn

Financial Ratios

• ROE: 14%, OPM: 23%

• EV/EBITDA: 27x (Dec 26)

• PER: 40x (Dec 26)

• FCF yield: 3.2%

This company used to trade at 20x PE but that has expanded to 30x and now 40x. Valuation is a big stretch but perhaps the growth and moat justifies.