SAP SE (SAP) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-50.9%

$116.11

vs $236.55 price

Levered DCF

$157.89

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

6.83

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	32.92×	88.72×	26.74×	49.17×	27.02×	24.53×	42.67×	25.38×
P/B	5.39×	6.1×	3.78×	2.81×	3.74×	4.24×	4.64×	3.59×
P/S	6.55×	8.11×	5.23×	3.82×	5.39×	4.61×	5.18×	4.19×
EV / EBITDA	19.95×	43×	22.9×	18.48×	14.67×	14.49×	21.87×	14.41×
Gross margin	72.9%	73.0%	72.2%	72.8%	73.2%	71.2%	69.7%	69.8%
Operating margin	26.1%	13.6%	18.6%	20.0%	23.4%	24.2%	16.2%	23.1%
Net margin	19.5%	9.1%	19.7%	7.7%	19.5%	18.8%	12.1%	16.5%
Current ratio	1.17×	1.12×	1.41×	1.06×	1.24×	1.17×	1.05×	1.58×
Debt / equity	0.18×	0.23×	0.2×	0.33×	0.39×	0.52×	0.44×	0.39×
Interest coverage	6.99×	4.52×	7.36×	14.86×	21.68×	18.66×	7.59×	13.64×
Dividend yield	1.1%	0.9%	1.5%	2.5%	1.5%	1.5%	1.3%	1.6%
Payout ratio	38.3%	82.1%	39.0%	125.4%	41.5%	36.2%	53.9%	40.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.0%	6.9%	14.2%	5.7%	13.5%	17.3%	10.8%	14.2%
Return on invested capital	12.4%	5.2%	7.1%	6.8%	8.5%	10.2%	6.8%	10.0%
Return on assets	10.2%	4.2%	9.0%	3.2%	7.4%	8.8%	5.5%	7.9%
Free cash flow yield	3.5%	1.6%	3.3%	4.2%	3.8%	5.1%	1.9%	2.7%
Earnings yield	3.0%	1.1%	3.8%	2.0%	3.6%	4.1%	2.3%	3.9%
Enterprise value	$240.9B	$278.3B	$163.9B	$116.8B	$151.6B	$136.3B	$151B	$106.3B
Net debt / EBITDA	-0.01×	0.16×	0.09×	0.64×	0.6×	1.08×	1.21×	0.36×
Cash conversion cycle (days)	-17	4	8	-26	12	28	42	25