SAP PE Ratio & Valuation,Is SAP Overvalued

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 Fair zone, suggesting that its current forward PE ratio of 30.73 is considered Fairly compared with the five-year average of 26.22. The fair price of SAP SE (SAP) is between 156.86 to 277.92 according to relative valuation methord.

Relative Value

Fair Zone

156.86-277.92

Current Price：240.97

Fair

30.73

18.90

EV/EBITDA

SAP SE. (SAP) has a current EV/EBITDA of 18.90. The 5-year average EV/EBITDA is 17.52. The thresholds are as follows: Strongly Undervalued below 7.83, Undervalued between 7.83 and 12.68, Fairly Valued between 22.37 and 12.68, Overvalued between 22.37 and 27.22, and Strongly Overvalued above 27.22. The current Forward EV/EBITDA of 18.90 falls within the Historic Trend Line -Fairly Valued range.

20.77

EV/EBIT

SAP SE. (SAP) has a current EV/EBIT of 20.77. The 5-year average EV/EBIT is 19.78. The thresholds are as follows: Strongly Undervalued below 9.52, Undervalued between 9.52 and 14.65, Fairly Valued between 24.91 and 14.65, Overvalued between 24.91 and 30.04, and Strongly Overvalued above 30.04. The current Forward EV/EBIT of 20.77 falls within the Historic Trend Line -Fairly Valued range.

5.93

SAP SE. (SAP) has a current PS of 5.93. The 5-year average PS is 5.29. The thresholds are as follows: Strongly Undervalued below 2.48, Undervalued between 2.48 and 3.88, Fairly Valued between 6.69 and 3.88, Overvalued between 6.69 and 8.10, and Strongly Overvalued above 8.10. The current Forward PS of 5.93 falls within the Historic Trend Line -Fairly Valued range.

24.54

P/OCF

SAP SE. (SAP) has a current P/OCF of 24.54. The 5-year average P/OCF is 25.91. The thresholds are as follows: Strongly Undervalued below 10.27, Undervalued between 10.27 and 18.09, Fairly Valued between 33.73 and 18.09, Overvalued between 33.73 and 41.55, and Strongly Overvalued above 41.55. The current Forward P/OCF of 24.54 falls within the Historic Trend Line -Fairly Valued range.

28.20

P/FCF

SAP SE. (SAP) has a current P/FCF of 28.20. The 5-year average P/FCF is 32.13. The thresholds are as follows: Strongly Undervalued below 10.45, Undervalued between 10.45 and 21.29, Fairly Valued between 42.96 and 21.29, Overvalued between 42.96 and 53.80, and Strongly Overvalued above 53.80. The current Forward P/FCF of 28.20 falls within the Historic Trend Line -Fairly Valued range.

SAP SE (SAP) has a current Price-to-Book (P/B) ratio of 5.50. Compared to its 3-year average P/B ratio of 5.06 , the current P/B ratio is approximately 8.80% higher. Relative to its 5-year average P/B ratio of 4.43, the current P/B ratio is about 24.27% higher. SAP SE (SAP) has a Forward Free Cash Flow (FCF) yield of approximately 2.75%. Compared to its 3-year average FCF yield of 2.83%, the current FCF yield is approximately -3.06% lower. Relative to its 5-year average FCF yield of 3.47% , the current FCF yield is about -20.73% lower.

5.50

P/B

Median3y

5.06

Median5y

4.43

2.75

FCF Yield

Median3y

2.83

Median5y

3.47

Competitors Valuation Multiple

The average P/S ratio for SAP's competitors is 10.72, providing a benchmark for relative valuation. SAP SE Corp (SAP) exhibits a P/S ratio of 5.93, which is -44.71% above the industry average. Given its robust revenue growth of 14.00%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of SAP decreased by 11.82% 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.

14.00%

9.31B → 10.61B

Revenue Growth

32.86%

17.01 → 22.60

Margin Expansion

-58.68%

81.28 → 33.58

P/E Change

-11.82%

276.06 → 243.43

Mkt Cap Growth

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Frequently Asked Questions

Is SAP SE (SAP) currently overvalued or undervalued?

What is SAP SE (SAP) fair value?

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. The fair price of SAP SE (SAP) is between 156.86 to 277.92 according to relative valuation methord.

How does SAP's valuation metrics compare to the industry average?

What is the current P/B ratio for SAP SE (SAP) as of Jan 08 2026?

As of Jan 08 2026, SAP SE (SAP) has a P/B ratio of 5.50. This indicates that the market values SAP at 5.50 times its book value.

What is the current FCF Yield for SAP SE (SAP) as of Jan 08 2026?

As of Jan 08 2026, SAP SE (SAP) has a FCF Yield of 2.75%. This means that for every dollar of SAP SE’s market capitalization, the company generates 2.75 cents in free cash flow.

What is the current Forward P/E ratio for SAP SE (SAP) as of Jan 08 2026?

As of Jan 08 2026, SAP SE (SAP) has a Forward P/E ratio of 30.73. This means the market is willing to pay $30.73 for every dollar of SAP SE’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for SAP SE (SAP) as of Jan 08 2026?

As of Jan 08 2026, SAP SE (SAP) has a Forward P/S ratio of 5.93. This means the market is valuing SAP at $5.93 for every dollar of expected revenue over the next 12 months.

SAP Valuation