SAP Relative Valuation
SAP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SAP is overvalued; if below, it's undervalued.
Historical Valuation
SAP SE (SAP) is now in the Undervalued zone, suggesting that its current forward PS ratio of 6.10 is considered Undervalued compared with the five-year average of 25.53. The fair price of SAP SE (SAP) is between +Inf to +Inf according to relative valuation methord. Compared to the current price of 243.82 USD , SAP SE is Undervalued By Fair.
Relative Value
Fair Zone
+Inf-+Inf
Current Price：243.82
Fair
Undervalued
0.00
PE
1Y
3Y
5Y
Trailing
Forward
19.36
EV/EBITDA
SAP SE. (SAP) has a current EV/EBITDA of 19.36. The 5-year average EV/EBITDA is 17.43. The thresholds are as follows: Strongly Undervalued below 7.70, Undervalued between 7.70 and 12.56, Fairly Valued between 22.29 and 12.56, Overvalued between 22.29 and 27.15, and Strongly Overvalued above 27.15. The current Forward EV/EBITDA of 19.36 falls within the Historic Trend Line -Fairly Valued range.
21.35
EV/EBIT
SAP SE. (SAP) has a current EV/EBIT of 21.35. The 5-year average EV/EBIT is 19.69. The thresholds are as follows: Strongly Undervalued below 9.41, Undervalued between 9.41 and 14.55, Fairly Valued between 24.83 and 14.55, Overvalued between 24.83 and 29.97, and Strongly Overvalued above 29.97. The current Forward EV/EBIT of 21.35 falls within the Historic Trend Line -Fairly Valued range.
6.10
PS
SAP SE. (SAP) has a current PS of 6.10. The 5-year average PS is 5.26. The thresholds are as follows: Strongly Undervalued below 2.45, Undervalued between 2.45 and 3.86, Fairly Valued between 6.66 and 3.86, Overvalued between 6.66 and 8.07, and Strongly Overvalued above 8.07. The current Forward PS of 6.10 falls within the Historic Trend Line -Fairly Valued range.
25.26
P/OCF
SAP SE. (SAP) has a current P/OCF of 25.26. The 5-year average P/OCF is 25.84. The thresholds are as follows: Strongly Undervalued below 10.18, Undervalued between 10.18 and 18.01, Fairly Valued between 33.68 and 18.01, Overvalued between 33.68 and 41.51, and Strongly Overvalued above 41.51. The current Forward P/OCF of 25.26 falls within the Historic Trend Line -Fairly Valued range.
29.10
P/FCF
SAP SE. (SAP) has a current P/FCF of 29.10. The 5-year average P/FCF is 32.04. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 and 21.17, Fairly Valued between 42.91 and 21.17, Overvalued between 42.91 and 53.78, and Strongly Overvalued above 53.78. The current Forward P/FCF of 29.10 falls within the Historic Trend Line -Fairly Valued range.
SAP SE (SAP) has a current Price-to-Book (P/B) ratio of 5.68. Compared to its 3-year average P/B ratio of 4.97 , the current P/B ratio is approximately 14.29% higher. Relative to its 5-year average P/B ratio of 4.41, the current P/B ratio is about 28.99% higher. SAP SE (SAP) has a Forward Free Cash Flow (FCF) yield of approximately 2.67%. Compared to its 3-year average FCF yield of 2.86%, the current FCF yield is approximately -6.63% lower. Relative to its 5-year average FCF yield of 3.49% , the current FCF yield is about -23.46% lower.
5.68
P/B
Median3y
4.97
Median5y
4.41
2.67
FCF Yield
Median3y
2.86
Median5y
3.49
Competitors Valuation Multiple
The average P/S ratio for SAP's competitors is 6.10, providing a benchmark for relative valuation. SAP SE Corp (SAP) exhibits a P/S ratio of 6.10, which is 0.00% above the industry average. Given its robust revenue growth of 14.00%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SAP decreased by 0.30% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 17.01 to 22.60.
The secondary factor is the Revenue Growth, contributed 14.00%to the performance.
Overall, the performance of SAP in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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