SAP SE

SWX:SAP Stock Report

Market Cap: CHF 178.1b

SAP Valuation

Is SAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of SAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: SAP (CHF154.26) is trading below our estimate of future cash flow value (CHF255.84)

Significantly Below Future Cash Flow Value: SAP is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SAP?

Key metric: As SAP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SAP. This is calculated by dividing SAP's market cap by their current earnings.
What is SAP's PE Ratio?
PE Ratio26.5x
Earnings€7.33b
Market Cap€194.28b

Price to Earnings Ratio vs Peers

How does SAP's PE Ratio compare to its peers?

The above table shows the PE ratio for SAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.7x
TEMN Temenos
18.1x-10.19%CHF 4.4b
CRM Salesforce
25.9x12.59%US$184.0b
INTU Intuit
30.1x14.47%US$120.8b
APP AppLovin
44.9x23.80%US$156.1b
SAP SAP
26.5x13.39%CHF 194.3b

Price-To-Earnings vs Peers: SAP is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (22.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does SAP's PE Ratio compare vs other companies in the European Software Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SAP 26.5xIndustry Avg. 24.3xNo. of Companies19PE020406080100+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SAP is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the European Software industry average (24.9x).

Price to Earnings Ratio vs Fair Ratio

What is SAP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SAP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SAP's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SAP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 154.26
CHF 236.44
+53.27%
13.70%CHF 293.29CHF 171.39n/a27
Jan ’27n/a
CHF 264.72
0%
10.64%CHF 322.48CHF 179.47n/a26
Dec ’26n/a
CHF 267.48
0%
10.13%CHF 320.88CHF 178.58n/a24
Nov ’26n/a
CHF 267.75
0%
10.06%CHF 320.00CHF 178.09n/a25
Oct ’26n/a
CHF 270.41
0%
11.23%CHF 322.65CHF 179.56n/a26
Sep ’26n/a
CHF 273.21
0%
11.50%CHF 323.96CHF 180.29n/a26
Aug ’26n/a
CHF 269.56
0%
11.39%CHF 321.11CHF 178.70n/a26
Jul ’26n/a
CHF 270.44
0%
12.35%CHF 326.96CHF 147.60n/a26
Jun ’26n/a
CHF 266.50
0%
11.98%CHF 322.25CHF 147.58n/a26
May ’26n/a
CHF 259.98
0%
10.80%CHF 299.72CHF 147.99n/a25
Apr ’26n/a
CHF 269.47
0%
11.99%CHF 305.15CHF 150.67n/a26
Mar ’26n/a
CHF 259.84
0%
12.69%CHF 299.34CHF 147.80n/a27
Feb ’26n/a
CHF 249.43
0%
16.46%CHF 302.09CHF 141.61CHF 156.8826
Jan ’26n/a
CHF 222.31
0%
13.84%CHF 281.10CHF 136.80n/a26
Dec ’25n/a
CHF 213.08
0%
14.14%CHF 251.61CHF 136.06n/a26
Nov ’25n/a
CHF 213.91
0%
14.14%CHF 252.59CHF 136.59n/a26
Oct ’25n/a
CHF 199.33
0%
13.70%CHF 229.49CHF 132.08n/a25
Sep ’25n/a
CHF 196.55
0%
12.89%CHF 225.14CHF 132.27n/a25
Aug ’25n/a
CHF 198.69
0%
12.92%CHF 229.35CHF 134.74n/a25
Jul ’25CHF 139.00
CHF 186.66
+34.29%
12.51%CHF 223.02CHF 121.21n/a24
Jun ’25CHF 139.00
CHF 187.36
+34.79%
13.08%CHF 225.03CHF 122.30n/a24
May ’25CHF 139.00
CHF 182.66
+31.41%
17.13%CHF 225.16CHF 88.11n/a24
Apr ’25CHF 139.00
CHF 173.09
+24.52%
17.18%CHF 223.76CHF 87.56n/a24
Mar ’25CHF 139.00
CHF 166.30
+19.64%
15.41%CHF 196.21CHF 86.14n/a24
Feb ’25CHF 139.00
CHF 156.08
+12.29%
16.73%CHF 186.46CHF 83.91n/a24
CHF 238.55
Fair Value
35.3% undervalued intrinsic discount
27
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/04 03:04
End of Day Share Price 2026/02/04 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

SAP SE is covered by 61 analysts. 30 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
Joseph BonnerArgus Research Company
Knut WollerBaader Helvea Equity Research