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SAP CFO Sees Qualtrics IPO as Cue to Re-Rate 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 SAP’s 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 fourth-quarter results in line with preliminary figures released on Jan. 14.

(Reporting by Douglas Busvine; editing by Thomas Seythal)

Source: Reuters

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