SAP · Intrinsic value
Is SAP SE (SAP) overvalued or undervalued?
SAP SE (SAP) trades at the delayed market price of $224.29 a share. That price already implies revenue growth of 17.5% a year for 5 years. TickerWorth's fair value is $135.83 a share (65% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is SAP overvalued?
- Fair value
- $135.83
- Market price
- $224.29
- Downside to fair value
- 39.4%
- Verdict
- 65% above fair value
Reverse DCF: Today's price implies revenue growth of 17.5% a year for 5 years; our model assumes 5.8% a year on average over the same horizon.
What is SAP's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Technology companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 32 of 100
Cheaper than 32% of Technology companies in US
- Price vs worth · 18 of 100
- Quality · 71 of 100
More profitable than 71% of Technology companies in US
- Financial health · 54 of 100
Financially stronger than 54% of Technology companies in US
- Growth · 28 of 100
Growing faster than 28% of Technology companies in US
- Momentum · 63 of 100
Outperformed 63% of Technology companies in US over the past year
Confidence: High confidence · Scored
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SAP DCF valuation: what the price assumes
At a recent price of $224.29, SAP SE (SAP) trades 65% above TickerWorth's blended fair value of $135.83 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices SAP overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -39.4% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values SAP at about $133.56 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts SAP SE's projected free cash flows at a weighted-average cost of capital (WACC) of 8.7%, with a long-run terminal growth rate of 2.5%. About 75% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 17.5% annual revenue growth for SAP. Our base case instead compounds to about 5.8% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SAP's modeled DCF value ranges from about $98.75 to $215.12 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what SAP SE would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SAP's intrinsic value. Figures update as new filings and prices come in.
Every input behind SAP's DCF
| Input | Value |
|---|---|
| Base-year revenueSAP SE FY2025 20-F (accession 0001104659-26-020058): ifrs-full:Revenue, FY2025 full year. | $41,922,990,000 |
| Base EBIT marginSAP SE FY2025 20-F (accession 0001104659-26-020058): ifrs-full:ProfitLossFromOperatingActivities 9,617,000,000 / revenue 36,800,000,000 = 26.13%, FY2025. | 26.1% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 8% → 7% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.78 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesSAP SE FY2025 20-F (accession 0001104659-26-020058): WeightedAverageShares = 1,166,000,000 shares, FY2025. | 1,166M |
| Market priceDelayed quote · as of 2026-10-19 15:21 UTC | $224.29 |
Change SAP's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does SAP SE do?
What does it do?
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. It operates in the Software - Application industry (Technology sector), headquartered in Germany. The company employs roughly 112,019 people.
How does it make money?
The business turns $38.2B in annual revenue into profit. Out of every $100 of sales, about $28 is left as operating profit (operating margin of 27.6%), after a 74% gross margin on the products/services it sells. After all costs, taxes and interest, 20.4% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.2× equity), can just cover its short-term bills (1.1× current ratio), and is currently profitable.
Who at SAP filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| SAP AG | 10% owner | Open-market buy | $151,868,160.00 | Form 4 for SAP AG (opens sec.gov in a new tab) | |
| SAP AG | 10% owner | Other acquisition/disposition | $180,773,920.00 | Form 4 for SAP AG (opens sec.gov in a new tab) | |
| SAP AG | 10% owner | Open-market buy | $38,602,960.00 | Form 4 for SAP AG (opens sec.gov in a new tab) | |
| SAP AG | 10% owner | Open-market buy | $3,788,361,460.00 | Form 4 for SAP AG (opens sec.gov in a new tab) | |
| SAP AG | 10% owner | Other acquisition/disposition | $458,071,965.00 | Form 4 for SAP AG (opens sec.gov in a new tab) | |
| SAP AKTIENGESELLSCHAFT SYSTEMS APPLICATIONS PRODUCTS IN DATA | 10% owner | Open-market buy | — | Form 4 for SAP AKTIENGESELLSCHAFT SYSTEMS APPLICATIONS PRODUCTS IN DATA (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is SAP's intrinsic value?
TickerWorth's blended fair value for SAP SE (SAP) is $135.83 per share, versus a market price of $224.29 (65% above fair value).
Is SAP overvalued or undervalued?
On our blended fair value SAP looks overvalued vs fair value at $224.29. This is an educational estimate, not advice.
What discount rate is used for SAP?
A WACC of 8.7% and a terminal growth rate of 2.5%.
Is SAP stock undervalued?
TickerWorth's fair value for SAP SE (SAP) is $135.83 against a market price of $224.29. Our read: 65% above fair value. This is a model estimate, not investment advice.
SAP (SAP) DCF valuation and fair value
Our fair value for SAP SE (SAP) is $135.83, built on a 8.7% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into SAP stock?
Today's price implies revenue growth of 17.5% a year for 5 years; our model assumes 5.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $224.29. A model estimate, not investment advice.
SAP (SAP) insider trading
The most recent insider filing (SEC Form 4) for SAP SE (SAP): SAP AG, 10% owner, open-market buy on 2012-02-22. The latest filings are listed on this page. A disclosure, not a signal to trade.
How does SAP compare with its peers?
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.