SAP is undervalued compared to peers like ServiceNow despite strong fundamentals: cloud revenue growing toward €26B by 2026, double-digit operating profit growth, improving free cash flow, and a powerful moat in mission-critical enterprise software. The company is strategically building an enterprise AI operating layer through acquisitions (Reltio, Dremio, Prior Labs) while executing a €10B buyback, positioning it as a European digital sovereignty play that the market hasn't fully repriced.