Latest Ratios: P/E Ratio 23.5x · EV/EBITDA 15.0x · ROE 15.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $187.0B | $285.4B | $290.5B | $182.4B | $121.2B | $165.3B | $154.1B | $160.0B | $118.9B | $134.6B | $103.6B |
| Enterprise Value | $186.8B | $285.3B | $291.6B | $183.1B | $125.3B | $171.5B | $164.3B | $171.8B | $121.5B | $137.2B | $108.2B |
| P/E Ratio → | 23.46 | 40.55 | 92.91 | 29.73 | 52.92 | 30.73 | 29.97 | 47.85 | 29.11 | 33.54 | 28.52 |
| P/S Ratio | 4.45 | 7.76 | 8.50 | 5.85 | 4.11 | 6.13 | 5.64 | 5.81 | 4.81 | 5.74 | 4.70 |
| P/B Ratio | 3.65 | 6.31 | 6.34 | 4.20 | 2.83 | 3.98 | 5.15 | 4.62 | 4.12 | 5.27 | 3.93 |
| P/FCF | 20.63 | 35.96 | 65.69 | 32.89 | 25.41 | 29.93 | 24.16 | 59.70 | 41.78 | 35.70 | 28.57 |
| P/OCF | 18.94 | 33.01 | 55.66 | 28.81 | 21.48 | 26.56 | 21.42 | 45.75 | 27.62 | 26.68 | 22.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.75 | 8.53 | 5.87 | 4.25 | 6.36 | 6.01 | 6.23 | 4.92 | 5.85 | 4.91 |
| EV / EBITDA | 14.97 | 26.10 | 49.04 | 25.53 | 16.75 | 21.86 | 19.43 | 27.07 | 17.20 | 22.31 | 16.90 |
| EV / EBIT | 17.01 | 26.51 | 50.31 | 27.51 | 18.67 | 18.15 | 21.69 | 34.12 | 20.20 | 25.80 | 21.09 |
| EV / FCF | — | 35.94 | 65.92 | 33.01 | 26.26 | 31.06 | 25.76 | 64.10 | 42.72 | 36.39 | 29.84 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.9% | 72.9% | 73.0% | 72.2% | 72.8% | 73.2% | 71.2% | 69.7% | 69.8% | 69.9% | 70.2% |
| Operating Margin | 26.1% | 26.1% | 13.6% | 18.6% | 20.0% | 23.4% | 24.2% | 16.2% | 23.1% | 20.8% | 23.3% |
| Net Profit Margin | 19.5% | 19.5% | 9.1% | 19.7% | 7.7% | 19.5% | 18.8% | 12.1% | 16.5% | 17.1% | 16.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.7% | 15.7% | 7.0% | 14.2% | 5.4% | 14.7% | 15.9% | 10.5% | 15.0% | 15.4% | 14.7% |
| ROA | 9.9% | 9.9% | 4.4% | 8.7% | 3.2% | 8.1% | 8.2% | 5.6% | 8.7% | 9.2% | 8.5% |
| ROIC | 15.7% | 15.7% | 7.7% | 9.6% | 9.4% | 10.8% | 11.5% | 8.6% | 14.3% | 12.4% | 12.8% |
| ROCE | 17.8% | 17.8% | 8.6% | 10.7% | 10.8% | 12.5% | 13.7% | 9.7% | 15.6% | 14.6% | 15.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.18 | 0.18 | 0.23 | 0.20 | 0.31 | 0.36 | 0.52 | 0.51 | 0.39 | 0.26 | 0.31 |
| Debt / EBITDA | 0.74 | 0.74 | 1.79 | 1.23 | 1.75 | 1.93 | 1.83 | 2.80 | 1.60 | 1.07 | 1.30 |
| Net Debt / Equity | — | -0.00 | 0.02 | 0.02 | 0.10 | 0.15 | 0.34 | 0.34 | 0.09 | 0.10 | 0.17 |
| Net Debt / EBITDA | -0.01 | -0.01 | 0.18 | 0.09 | 0.54 | 0.80 | 1.20 | 1.86 | 0.38 | 0.42 | 0.72 |
| Debt / FCF | — | -0.02 | 0.24 | 0.12 | 0.85 | 1.13 | 1.59 | 4.40 | 0.94 | 0.69 | 1.27 |
| Interest Coverage | 8.14 | 8.14 | 5.62 | 5.07 | 3.05 | 10.00 | 21.34 | 11.49 | 14.40 | 18.46 | 19.81 |
Net cash position: cash ($8.2B) exceeds total debt ($8.1B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.17 | 1.17 | 1.12 | 1.40 | 1.06 | 1.24 | 1.17 | 1.05 | 1.59 | 1.17 | 1.19 |
| Quick Ratio | 1.17 | 1.17 | 1.12 | 1.40 | 1.06 | 1.21 | 1.17 | 1.05 | 1.59 | 1.17 | 1.19 |
| Cash Ratio | 0.57 | 0.57 | 0.59 | 0.77 | 0.57 | 0.72 | 0.54 | 0.39 | 0.87 | 0.49 | 0.50 |
| Asset Turnover | — | 0.52 | 0.46 | 0.46 | 0.41 | 0.38 | 0.47 | 0.41 | 0.48 | 0.55 | 0.50 |
| Inventory Turnover | — | — | — | — | — | 12.28 | — | — | — | — | — |
| Days Sales Outstanding | — | 72.11 | 82.63 | 81.51 | 77.11 | 91.48 | 90.83 | 125.10 | 98.31 | 96.54 | 96.33 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.6% | 0.9% | 0.9% | 1.3% | 2.4% | 1.3% | 1.2% | 1.1% | 1.4% | 1.1% | 1.3% |
| Payout Ratio | 36.8% | 36.8% | 82.1% | 39.0% | 125.4% | 41.5% | 36.2% | 53.9% | 40.9% | 37.4% | 37.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 2.5% | 1.1% | 3.4% | 1.9% | 3.3% | 3.3% | 2.1% | 3.4% | 3.0% | 3.5% |
| FCF Yield | 4.8% | 2.8% | 1.5% | 3.0% | 3.9% | 3.3% | 4.1% | 1.7% | 2.4% | 2.8% | 3.5% |
| Buyback Yield | 1.1% | 0.7% | 0.7% | 0.5% | 1.2% | 0.0% | 1.0% | 0.0% | 0.0% | 0.4% | 0.0% |
| Total Shareholder Yield | 2.7% | 1.6% | 1.6% | 1.8% | 3.6% | 1.3% | 2.2% | 1.1% | 1.4% | 1.5% | 1.3% |
| Shares Outstanding | — | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B |
Cloud migration execution lag
According to current market data, SAP trades at a forward P/E of 20.96, which appears to discount the company relative to pure-play SaaS peers like ServiceNow, suggesting investors remain cautious about the long-term margin profile of the cloud-native business model during this ongoing structural transition.
The valuation multiple suggests that the market is pricing in a blend of legacy stability and cloud-growth uncertainty. While the forward P/E is lower than high-growth peers, it remains elevated compared to traditional industrial software, indicating that the market is waiting for clearer evidence of sustained margin expansion before re-rating the stock.
Based on reported financial figures, SAP's ROIC has remained in a narrow range between 1.3% and 5.1% over the last ten quarters, which indicates that the company is currently struggling to compound returns on invested capital while absorbing the heavy costs of its cloud-native infrastructure pivot.
The low ROIC relative to peers like Microsoft or Autodesk suggests that the capital-intensive nature of the S/4HANA migration is currently suppressing returns. Investors should monitor whether the eventual sunset of legacy maintenance revenue allows for a meaningful improvement in capital efficiency as the business model shifts toward a more scalable subscription base.
As reported in recent financial statements, SAP's asset turnover has remained stagnant at approximately 0.12 to 0.14, reflecting the structural difficulty of optimizing working capital while managing the complex, multi-year migration of a massive global installed base toward a ratable cloud revenue model.
The fluctuation in Days Sales Outstanding, which reached 84 days in 2024Q1, suggests that the company faces periodic friction in cash collection cycles during large-scale enterprise contract renewals. This inefficiency appears to be a byproduct of the 'RISE with SAP' transition, where contract structures are inherently more complex than legacy license agreements.
According to the latest quarterly filings, SAP has successfully moved to a net-cash position with zero debt as of 2026Q1, a significant improvement from the 0.26 debt-to-equity ratio observed in 2024Q3, which provides the firm with substantial financial flexibility to navigate potential economic downturns or strategic acquisitions.
The absence of debt service obligations is a critical differentiator for SAP in a high-interest-rate environment, allowing management to prioritize R&D and shareholder returns without the pressure of refinancing risk. This balance sheet strength appears to be a deliberate strategic choice to insulate the company from the volatility inherent in its ongoing business model transformation.
Based on an analysis of the business model, the P/E ratio is frequently misapplied to SAP because it fails to account for the significant non-cash share-based compensation and restructuring charges that distort GAAP earnings during the company's multi-year transition to a cloud-native, subscription-based revenue model.
Investors should instead focus on Free Cash Flow yield or EV/Recurring Revenue, as these metrics better capture the underlying cash-generating power of the cloud business. Relying solely on P/E risks penalizing the company for the accounting 'noise' created by its necessary investment in cloud-native talent and infrastructure.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SAP stock.
SAP SE's current P/E ratio is 23.5x. The historical average is 43.8x. This places it at the 7th percentile of its historical range.
SAP SE's current EV/EBITDA is 15.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.7x.
SAP SE's return on equity (ROE) is 15.7%. The historical average is 20.9%.
Based on historical data, SAP SE is trading at a P/E of 23.5x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
SAP SE's current dividend yield is 1.60% with a payout ratio of 36.8%.
SAP SE has 72.9% gross margin and 26.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
SAP SE's Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.