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    Is Sinch (OM:SINCH) Undervalued Following Its New SAP RCS Launch?

    Simply Wall St·10/15/2026 17:31:25
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    Sinch’s new RCS channel with SAP: why it matters for investors

    Sinch (OM:SINCH) has added Rich Communication Services to its native integration with SAP Engagement Cloud, giving enterprise customers another interactive messaging option alongside existing channels such as SMS, WhatsApp and Viber.

    The update enables AI driven, conversational campaigns that can run inside SAP’s omnichannel environment, with Sinch providing the underlying delivery infrastructure for supported RCS markets worldwide.

    Sinch shares trade at SEK47.45, with a 7 day share price return of 11.20% and a 90 day share price return of 21.48%. The year to date share price return of 54.66% and 3 year total shareholder return of 143.16% suggest momentum has been building over a longer stretch, despite a 5 year total shareholder return that has declined 72.52%.

    Scan beyond Sinch and SAP by reviewing other messaging and communications platforms on our hand picked list of 92 AI infrastructure stocks.

    After a sharp year to date rally and a fresh RCS catalyst, Sinch still trades at roughly a 29% discount to intrinsic value estimates, while sitting slightly above analyst targets. Is the market being careful or just late to reprice?

    Most Popular Narrative: 5.8% Overvalued

    Analysts following Sinch see fair value at about SEK44.83, slightly below the latest SEK47.45 close. This frames the RCS news against an already full narrative.

    Sinch's rapid integration of AI and machine learning capabilities across its communications platform, including AI-enabled products, conversational solutions, and partnerships with platforms like Salesforce and Microsoft, is positioned to unlock new product revenue streams and boost customer engagement, likely accelerating revenue and supporting long-term growth. The proliferation of mobile devices and increased demand for real-time, omnichannel business messaging, including next-gen channels like RCS, is expected to expand Sinch's addressable market, positioning the company to benefit from rising usage volumes and growing net sales as enterprises accelerate digital transformation.

    See why 15 investors see Sinch as 6% overvalued.

    Result: Fair Value of SEK44.83 (OVERVALUED)

    Still, Sinch’s story can unravel if organic net sales stay around 2% while RCS traffic simply replaces SMS rather than adding new, higher margin volume.

    Find out about the key risks to this Sinch narrative.

    Another View on Sinch’s valuation

    Analysts see Sinch as roughly 5.8% overvalued against their SEK44.83 fair value, yet the SWS DCF model points the other way and flags the shares as trading about 29.7% below an intrinsic value of SEK66.94. Which lens do you trust when estimates pull in opposite directions?

    Look into how the SWS DCF model arrives at its fair value.

    SINCH Discounted Cash Flow as at Oct 2026
    SINCH Discounted Cash Flow as at Oct 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Sinch for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 195 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    Mixed signals in the Sinch story so far. If you want to move quickly and base your call on the full picture, start with 3 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond Sinch?

    Sinch gives you one angle on communications and AI. To round out your watchlist, you might consider a few focused stock ideas.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.