WallStSmart
SAP

SAP SE ADR

NYSE: SAP · TECHNOLOGY · SOFTWARE - APPLICATION

$173.44
-1.04% today

Updated 2026-04-27

Market cap
$206.62B
P/E ratio
23.98
P/S ratio
5.53x
EPS (TTM)
$7.31
Dividend yield
1.69%
52W range
$161 – $313
Volume
3.2M

SAP SE ADR (SAP) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for SAP.

WallStSmart Verdict
Fairly
Valued

Valuation reasonably reflects current fundamentals. Limited margin of safety at these levels.

Smart Value Score: 62 / 100
P/E (TTM)
24.0x
vs 5Y median of 28.5x
PEG
0.74
Under 1.0 = undervalued
Margin of Safety
-16.95%
Fair value $167.99 vs $173.44
EV / EBITDA
13.8x

SAP historical valuation range

Where current P/E sits in SAP's own 5Y range.

NOW
22.7x
5Y Low
24.9x
25th
28.5x
Median
37.8x
75th
89.6x
5Y High
SAP is trading cheaper than 85% of the last 5Y.
15th percentile · Historically cheap

SAP intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$173.44
Market value
Intrinsic value
$167.99
DCF estimate
Margin of safety
-16.95%
-3.1% upside to fair value

Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.

SAP valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

PEG ratio under 1.0
PEG of 0.74 indicates growth is outpacing the multiple. Traditionally a buy signal for quality compounders.
P/E near 5Y low
Current P/E sits in the 15th percentile of its 5Y range. Historically cheap relative to its own history.
Premium to fair value
Price exceeds DCF intrinsic value by 16.9%. Limited downside protection.

P/E Ratio — History

Current: 23.98x

P/S Ratio — History

Current: 5.53x

Is SAP overvalued in 2026?

SAP SE ADR (SAP) currently trades at $173.44 per share with a market capitalization of $206,619,673,000.00. Based on our multi-factor framework, the stock trades at a fair valuation with a Smart Value Score of 62/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

The stock trades at a P/E ratio of 24.0x, below its 5-year median of 28.5x. The PEG ratio of 0.74 suggests earnings growth is outpacing the multiple, a classic sign of undervaluation.

Looking at its own history, SAP is currently trading cheaper than 85% of the last 5Y on P/E. This places it in the 15th percentile of its historical range, a level that has historically coincided with attractive entry points.

Our discounted cash flow model estimates SAP's intrinsic value at $167.99 per share, against the current market price of $173.44. This implies a premium to fair value of -16.95%. The current price sits well above what projected cash flows justify, implying investors are paying for growth that has not yet materialized.

The Piotroski F-Score of 5/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.

Bottom line: SAP trades at a fair valuation on our framework, with a Smart Value Score of 62/100. The valuation is defensible but offers no obvious bargain. Patience or a better entry price may reward disciplined buyers.

Frequently asked questions

Is SAP overvalued in 2026?

Based on a Smart Value Score of 62/100, SAP is fairly valued. Price reasonably reflects current fundamentals with limited cushion in either direction.

What is SAP's fair value?

Our DCF model estimates SAP's intrinsic value at $167.99 per share, versus the current price of $173.44. This produces a margin of safety of -16.95%.

What P/E ratio does SAP trade at?

SAP trades at a P/E of 24.0x on trailing twelve-month earnings, compared to its 5-year median of 28.5x.

Is SAP a buy based on valuation?

WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 62/100 reflects the combined read on growth, quality, and price. The profile is balanced. Best suited for investors with an existing thesis.

How does SAP's valuation compare to its history?

On P/E, SAP currently sits in the 15th percentile of its own 5Y range. That is historically cheap relative to where it has traded over the period.

What is SAP's Smart Value Score?

SAP's Smart Value Score is 62/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.