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SAP SENYSE:SAP Stock Report

Market Cap US$179.7b
Share Price
US$155.22
US$262.85
40.9% undervalued intrinsic discount
1Y-46.0%
7D-5.5%
1D
Portfolio Value
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View

SAP SE

NYSE:SAP Stock Report

Market Cap: US$179.7b

SAP (SAP) Stock Overview

Provides enterprise application and business solutions worldwide. More details

SAP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

Rewards

Trading at 37.9% below our estimate of its fair value

Earnings are forecast to grow 14.91% per year

Earnings grew by 27.6% over the past year

Pays a reliable dividend of 1.86%

Trading at good value compared to peers and industry

Risk Analysis

No risks detected for SAP from our risk checks.

SAP Community Fair Values

Create Narrative

See what 70 others think this stock is worth. Follow their fair value or set your own to get alerts.

Top Community Narratives

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SAP SE Competitors

Price History & Performance

Summary of share price highs, lows and changes for SAP
Historical stock prices
Current Share Price€155.22
52 Week High€313.28
52 Week Low€154.13
Beta0.73
1 Month Change-11.78%
3 Month Change-12.88%
1 Year Change-46.03%
3 Year Change16.30%
5 Year Change10.59%
Change since IPO1,154.30%

Recent News & Updates

Seeking Alpha • Jun 03

Is SAP Staging A Comeback?

Summary SAP SE is rated Buy as recent AI-driven initiatives are expected to reaccelerate cloud backlog and revenue growth. Cloud now represents 62.4% of sales; recent AI tools and autonomous enterprise ambitions target a €2 billion uplift by 2028. Q1 saw 19% y/y cloud revenue growth (+27% c. FX%) and 280 bps y/y operating margin expansion, despite prior cloud backlog deceleration. Valuation at 23.5x forward earnings leaves room for multiple expansion if cloud momentum sustains, narrowing the gap to peers like MSFT. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Jun 03

Is SAP Staging A Comeback?

Summary SAP SE is rated Buy as recent AI-driven initiatives are expected to reaccelerate cloud backlog and revenue growth. Cloud now represents 62.4% of sales; recent AI tools and autonomous enterprise ambitions target a €2 billion uplift by 2028. Q1 saw 19% y/y cloud revenue growth (+27% c. FX%) and 280 bps y/y operating margin expansion, despite prior cloud backlog deceleration. Valuation at 23.5x forward earnings leaves room for multiple expansion if cloud momentum sustains, narrowing the gap to peers like MSFT. Read the full article on Seeking Alpha
Seeking Alpha • Apr 29

SAP SE Q1 2025: Solid Start, But Real Work Still Ahead

Summary SAP delivered solid Q1 results with €9.01bn revenue (+12% YoY) and cloud revenue up 27%, now over 40% of total revenue. Operating profit jumped 60% YoY due to tight cost control; management remains confident, but guidance feels conservative. Key growth drivers: S/4HANA Cloud, Business Technology Platform, and AI integration (Joule), despite competition and slow European cloud adoption. Long-term outlook strong with cloud margins improving and strategic positioning with hyperscalers; short-term hold due to potential Q2 volatility. Read the full article on Seeking Alpha
Seeking Alpha • Apr 23

SAP: Despite Strong Results, This Company Is Overvalued (Rating Upgrade)

Summary SAP extended its rally after reporting Q1 results and maintaining its full-year outlook, a port in the storm amid a very turbulent macroeconomy. SAP's consistency and its ability to maintain cloud growth rates have me more sanguine in the stock's prospects, and I'm upgrading the stock to a neutral rating. It's important to note that SAP's guidance, however, is on constant currency terms. The sharp rise in the euro will impact SAP heavily. SAP is richly valued at ~40x P/E, despite the fact that its growth profile isn't much better than similarly scaled U.S. peers (and its margin story is still playing catch-up). Read the full article on Seeking Alpha
Seeking Alpha • Jan 29

SAP: A Pullback Is Overdue

Summary SAP's stock slid after reporting Q4 results and raising its FY25 outlook, a signal that its rich valuation is starting to catch up with it. Fundamental risks include AI's impact on subscription seats, saturated markets with stiff competition, and macroeconomic challenges in Germany. SAP's workforce transformation via AI hasn't significantly reduced hiring, and its operating margin of ~26% lags behind key competitors like Salesforce and Workday. Trading at a ~40x P/E ratio, SAP sits at an undeserved valuation premium and is overdue for a correction. Read the full article on Seeking Alpha
New Narrative • Jan 08

SAP's Revenue Will Soar by Over 10% as Profit Margins Improve

AI functionality is a new world
Seeking Alpha • Oct 28

SAP: This Stock Has Now Become Too Rich, Sell Now (Rating Downgrade)

Summary SAP's ~60% YTD rise has propelled it to a near-50x P/E multiple, well above most of its cloud peers. The company's ~10% total revenue growth is unimpressive for such a rich multiple, especially given the fact that its ERP is already saturated in the global market. Despite plans to "reskill" its workforce and right-size headcount over time, its recent M&A binges are also contributing to increased headcount. Given the incredibly rich valuation and the potential for macro impacts to hurt its cloud growth potential, I'd recommend selling here and investing elsewhere. Read the full article on Seeking Alpha
Seeking Alpha • Oct 22

SAP: Solid Quarter And I Remain Buy Rated Given The Positive Outlook

Summary SAP's 3Q24 results showed 10% y/y revenue growth, driven by 27% y/y cloud revenue growth and strong S/4 HANA migration traction. Management revised FY24 guidance upwards, expecting adj EBIT growth of 20-23% y/y and cloud/software revenue growth of 10-11% y/y. AI adoption is accelerating, with 20% of deals including premium AI features, enhancing SAP's cloud offerings and driving growth. Read the full article on Seeking Alpha
Seeking Alpha • Sep 27

SAP: Very Hard To Justify The Current Share Price

Summary SAP stock's stellar performance over the past year is impressive, but it does raise a few eyebrows. The company's profitability leaves a lot to be desired, especially when compared to major peers in the space. Cloud revenue growth figures could provide support for the stock over the near-term, but I expect this to be a short-lived phenomenon. Read the full article on Seeking Alpha
Seeking Alpha • Aug 15

SAP: Excellent Cloud And AI Momentum, But Strength Is Priced In

Summary Shares of SAP have surged nearly 40% this year, buoyed again by the company's strong recent Q2 results. The company accelerated total revenue growth, while also boosting its operating profit expectations for FY25. The company is utilizing AI to "reskill" its workforce, trimming down on headcount expansion without undergoing major layoffs. As of June, management has also committed to paying out at least 40% of post-tax profits as a dividend. Still, all of these strengths are already priced in, given SAP's >40x P/E ratio now sits well above most large-cap tech peers. Maintaining a neutral rating. Read the full article on Seeking Alpha
Seeking Alpha • Jul 24

SAP: Demand Backdrop Remains Solid

Summary SAP's 2Q24 results show strong revenue growth of 10% on a constant currency basis, driven by solid cloud revenue growth and AI adoption. Margins are improving with EBIT margin increasing from 19.1% to 23.4%. Target price for SAP is EUR309 based on FY26 estimates, with expectations of low-teens growth fueled by cloud revenue momentum and AI adoption. Read the full article on Seeking Alpha
Seeking Alpha • May 27

SAP: Incredible Performance, Terrible Price

Summary SAP stock has risen 30% YTD and 50% over the past year, outperforming the S&P 500 and other tech peers. Investors are enthusiastic about SAP's cloud offerings, particularly SAP Rise and SAP Grow, and its plans to transform its workforce through AI. However, with a P/E ratio of ~30x FY25 earnings, the stock is quite expensive and may not have much room for further growth. Read the full article on Seeking Alpha
Seeking Alpha • Apr 23

SAP Q1 Earnings: AI Transformation Is Well Underway

Summary SAP reported Q1 FY24 earnings in line with expectations, showing progress towards its Ambition 2025 targets. Cloud revenues and backlog continue to grow at strong rates, demonstrating the success of SAP's turnaround efforts. With no significant change in the outlook, most expectations have already been priced in, suggesting a neutral view on SAP. Read the full article on Seeking Alpha
Seeking Alpha • Mar 23

Sequoia Fund -  SAP SE: We See A Clear Path To Enhanced Profitability

Summary After following SAP for many years, we bought shares in the company in 2022. A handful of years ago, SAP set about transitioning its core ERP software product suite from one typically run by customers on their premises to a cloud version delivered directly by SAP. In 2022, slowing ERP revenue growth and mounting temporary costs related to the ERP cloud transition gave some investors pause. A year and a half later, we remain optimistic about SAP's prospects. Read the full article on Seeking Alpha
Seeking Alpha • Mar 09

SAP Is Overvalued, But Its 2024 Transformation Bodes Well For The Future

Summary SAP plans to restructure and focus on growth, particularly in business AI, affecting around 8,000 positions. The company aims to maintain a similar headcount by the end of 2024 and expects cloud revenue to increase by 24-27% for the fiscal year. SAP's cloud revenue and backlog have shown significant growth recently, but its operating profit has declined. Reskilling and restructuring are seen as important for future competitiveness. I consider the stock to be moderately overvalued at this time, and investors may find a more favorable valuation later in the year. Read the full article on Seeking Alpha

Shareholder Returns

SAPUS SoftwareUS Market
7D-5.5%-2.0%1.4%
1Y-46.0%-17.7%25.7%

Return vs Industry: SAP underperformed the US Software industry which returned -17.7% over the past year.

Return vs Market: SAP underperformed the US Market which returned 25.7% over the past year.

Price Volatility

Is SAP's price volatile compared to industry and market?
SAP volatility
SAP Average Weekly Movement5.9%
Software Industry Average Movement10.0%
Market Average Movement7.2%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.1%

Stable Share Price: SAP has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: SAP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1972111,038Christian Kleinwww.sap.com

SAP SE, together with its subsidiaries, provides enterprise application and business solutions worldwide. It offers SAP Business AI; SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR, time, payroll, talent and employee experience management, and analytics and planning; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners.

SAP SE Fundamentals Summary

How do SAP's earnings and revenue compare to its market cap?
SAP fundamental statistics
Market capUS$179.73b
Earnings (TTM)US$8.39b
Revenue (TTM)US$42.85b
21.4x
P/E Ratio
4.2x
P/S Ratio

Is SAP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SAP income statement (TTM)
Revenue€37.34b
Cost of Revenue€9.81b
Gross Profit€27.53b
Other Expenses€20.22b
Earnings€7.31b

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

Jul 23, 2026

Earnings per share (EPS)6.26
Gross Margin73.72%
Net Profit Margin19.58%
Debt/Equity Ratio17.3%

How did SAP perform over the long term?

See historical performance and comparison

Dividends

1.9%
Current Dividend Yield
40%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/21 07:57
End of Day Share Price 2026/06/18 00:00
Earnings2026/03/31
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 63 analysts. 21 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