SAP Valuation

SAP SE

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276.720

-1.13(-0.407%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 36.89 is considered Overvalued compared with the five-year average of 26.38. The fair price of SAP SE (SAP) is between 162.50 to 265.42 according to relative valuation methord. Compared to the current price of 276.72 USD , SAP SE is Overvalued By 4.26%.

Relative Value

Fair Zone

162.50-265.42

Current Price：276.72

4.26%

Overvalued

36.89

Trailing

Forward

23.28

EV/EBITDA

SAP SE. (SAP) has a current EV/EBITDA of 23.28. The 5-year average EV/EBITDA is 17.06. The thresholds are as follows: Strongly Undervalued below 7.49, Undervalued between 7.49 and 12.27, Fairly Valued between 21.84 and 12.27, Overvalued between 21.84 and 26.63, and Strongly Overvalued above 26.63. The current Forward EV/EBITDA of 23.28 falls within the Overvalued range.

25.02

EV/EBIT

SAP SE. (SAP) has a current EV/EBIT of 25.02. The 5-year average EV/EBIT is 19.37. The thresholds are as follows: Strongly Undervalued below 9.21, Undervalued between 9.21 and 14.29, Fairly Valued between 24.45 and 14.29, Overvalued between 24.45 and 29.53, and Strongly Overvalued above 29.53. The current Forward EV/EBIT of 25.02 falls within the Overvalued range.

7.13

SAP SE. (SAP) has a current PS of 7.13. The 5-year average PS is 5.17. The thresholds are as follows: Strongly Undervalued below 2.44, Undervalued between 2.44 and 3.80, Fairly Valued between 6.53 and 3.80, Overvalued between 6.53 and 7.89, and Strongly Overvalued above 7.89. The current Forward PS of 7.13 falls within the Overvalued range.

29.95

P/OCF

SAP SE. (SAP) has a current P/OCF of 29.95. The 5-year average P/OCF is 25.76. The thresholds are as follows: Strongly Undervalued below 9.98, Undervalued between 9.98 and 17.87, Fairly Valued between 33.65 and 17.87, Overvalued between 33.65 and 41.54, and Strongly Overvalued above 41.54. The current Forward P/OCF of 29.95 falls within the Historic Trend Line -Fairly Valued range.

34.50

P/FCF

SAP SE. (SAP) has a current P/FCF of 34.50. The 5-year average P/FCF is 31.90. The thresholds are as follows: Strongly Undervalued below 10.00, Undervalued between 10.00 and 20.95, Fairly Valued between 42.85 and 20.95, Overvalued between 42.85 and 53.80, and Strongly Overvalued above 53.80. The current Forward P/FCF of 34.50 falls within the Historic Trend Line -Fairly Valued range.

SAP SE (SAP) has a current Price-to-Book (P/B) ratio of 6.72. Compared to its 3-year average P/B ratio of 4.60 , the current P/B ratio is approximately 45.99% higher. Relative to its 5-year average P/B ratio of 4.32, the current P/B ratio is about 55.59% higher. SAP SE (SAP) has a Forward Free Cash Flow (FCF) yield of approximately 2.32%. Compared to its 3-year average FCF yield of 3.00%, the current FCF yield is approximately -22.49% lower. Relative to its 5-year average FCF yield of 3.52% , the current FCF yield is about -34.11% lower.

6.72

P/B

Median3y

4.60

Median5y

4.32

2.32

FCF Yield

Median3y

3.00

Median5y

3.52

Competitors Valuation Multiple

The average P/S ratio for SAP's competitors is 10.88, providing a benchmark for relative valuation. SAP SE Corp (SAP) exhibits a P/S ratio of 7.13, which is -34.47% above the industry average. Given its robust revenue growth of 14.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of SAP increased by 25.95% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 11.08 to 19.38.

The secondary factor is the Revenue Growth, contributed 14.67%to the performance.

Overall, the performance of SAP in the past 1 year is driven by Margin Expansion. Which is more sustainable.

14.67%

8.92B → 10.23B

Revenue Growth

74.91%

11.08 → 19.38

Margin Expansion

-63.63%

117.14 → 42.60

P/E Change

25.95%