SAP SAP SE
$222.63
▼ 1.1%Updated Oct 16, 2:25 PM ET
Report Card
SAP at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 66/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▼ Down 47.1% in the year to Jul 6, 2026
Key Metrics
Market Cap
$176.08B
P/E
22.63x
Forward P/E (est.)
17.63x
ROE
16.9%
Revenue Growth
6.2%
EPS Growth
28.4%
Profit Margin
19.6%
FCF Yield
2.3%
Debt / Equity
0.17x
ROIC
23.0%
Interest Coverage
19.55x
Current Ratio
1.17x
Dividend Yield
1.8%
Implied Growth (rev. DCF)
3.6%
Rating Score
66/100
Business Overview
SAP SE (SAP) is a large-cap NYSE-listed company in the Technology industry, within the Information Technology sector, with a market value around $176.08B.
In its latest reported year it generated about $39.74B in revenue and $7.73B in net profit.
Our model rates SAP Favorable (66/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedThe filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
72.7% average over the last 3 years
±1.4 pts around 71.5% across 10 years
grew in 7 of the last 9 year-over-year periods
positive in 10 of 10 years
23.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what SAP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. SAP trades near $222.63, above its 50-day average ($169.55) and 200-day average ($213.04). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 46 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. SAP's is $4.80 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, SAP found buyers near $148.06 (support) and sellers near $192.13 (resistance); its 52-week range then was $148.06–$313.28. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.4× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
8.1%
Revenue moved from $23.83B in 2016 to $39.74B in 2025, a 5.8% compound annual growth rate. The most recent year grew a steady 6.2% year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
72.9%
Operating Margin
26.1%
Net Margin
19.5%
ROE
16.9%
SAP SE keeps about 19.6% of each sales dollar as net profit, with a 72.9% gross margin and 26.1% operating margin. Return on equity is 16.9% and return on invested capital about 23.0%. Margins this wide usually signal pricing power or a cost advantage.
Debt Analysis
Total Debt
$4.91B
Net Debt
$92.00M
Net Debt / EBITDA
0.01x
Debt / Equity
0.17x
Leverage: debt-to-equity is 0.2x, and operating profit covers interest about 19.6x, with a current ratio of 1.2x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $4.91B of total debt against $4.82B of cash.
Cash Flow Analysis
Operating CF
$9.89B
Free Cash Flow
$9.09B
FCF Margin
22.9%
In the latest year SAP SE produced about $9.89B of operating cash flow and $9.09B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.3% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
1.8%
Per share (latest FY)
$2.54
Total paid (latest FY)
$2.97B
History on record
10 years
dividend uses 33% of free cash flow
38% of net income paid out
total dividends increased 2 years in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
22.63x
P/S
4.5x
P/B
5.45x
EV / EBITDA
14.93x
SAP trades at 22.6x trailing earnings (about 17.6x on estimated forward earnings), 4.5x sales, and 5.5x book value. Reverse-engineering today's price implies the market expects roughly 3.6% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$144.15
Current price
$222.63
Starting FCF (latest 10-K)
$9.09B
Growth, years 1–5
6.2%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where SAP sits versus the Information Technology companies we cover.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How SAP stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
Among the 98 rated Information Technology companies we cover, SAP ranks #31 by our overall rating. It trades at a discount versus the sector on earnings (22.6x P/E vs. 36.2x median) with a lower return on equity (16.9% vs. 17.5%) and slower revenue growth (6.2% vs. 17.7%).
P/E vs sector
22.6x
median 36.2x
ROE vs sector
16.9%
median 17.5%
Growth vs sector
6.2%
median 17.7%
Sector rank
#31
of 98 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 98 rated companies among the 230 Information Technology stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$178.88 – $293.87
vs. $222.63 today · implied CAGR -4% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $42.13B | $44.66B | $47.34B | $50.18B | $53.19B |
| Net income | $8.00B | $8.48B | $8.99B | $9.53B | $10.11B |
| EPS | $10.12 | $10.73 | $11.37 | $12.05 | $12.78 |
| Share price (low) | $141.69 | $150.19 | $159.20 | $168.75 | $178.88 |
| Share price (high) | $232.77 | $246.74 | $261.54 | $277.23 | $293.87 |
| CAGR (low–high) | -36% / 5% | -18% / 5% | -11% / 6% | -7% / 6% | -4% / 6% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for SAP:
- High net margins (19.6%) point to pricing power or efficiency.
- Strong return on equity (16.9%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.2x) lowers risk.
- Our model's overall read is Favorable (66/100).
Bear Case
The case against SAP:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: SAP SE is a large-cap information technology business growing at a mature pace, with solid profitability, and a sound balance sheet. It trades at 22.6x earnings, which our model scores Favorable (66/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 39 Wall Street analysts covering SAP recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+3 pts of buy ratings).
Latest SEC Filings
SAP's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
SAP — frequently asked questions
Is SAP a good stock to buy?
We don't give buy or sell advice. Our model rates SAP SE Favorable (66/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is SAP's rating on The Stocks School?
SAP SE currently scores 66/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does SAP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from SAP SE's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for SAP calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this SAP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell SAP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.