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Latest Ratios: P/E Ratio 31.3x · EV/EBITDA 19.9x · 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 | $252.9B | $285.4B | $290.5B | $182.4B | $121.2B | $165.3B | $154.1B | $160.0B | $118.9B | $134.6B | $103.6B |
| Enterprise Value | $252.7B | $285.3B | $291.6B | $183.1B | $125.3B | $171.5B | $164.3B | $171.8B | $121.5B | $137.2B | $108.2B |
| P/E Ratio → | 31.26 | 40.55 | 92.91 | 29.73 | 52.92 | 30.73 | 29.97 | 47.85 | 29.11 | 33.54 | 28.52 |
| P/S Ratio | 5.93 | 7.76 | 8.50 | 5.85 | 4.11 | 6.13 | 5.64 | 5.81 | 4.81 | 5.74 | 4.70 |
| P/B Ratio | 4.87 | 6.31 | 6.34 | 4.20 | 2.83 | 3.98 | 5.15 | 4.62 | 4.12 | 5.27 | 3.93 |
| P/FCF | 27.49 | 35.96 | 65.69 | 32.89 | 25.41 | 29.93 | 24.16 | 59.70 | 41.78 | 35.70 | 28.57 |
| P/OCF | 25.24 | 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 | 19.95 | 26.10 | 49.04 | 25.53 | 16.75 | 21.86 | 19.43 | 27.07 | 17.20 | 22.31 | 16.90 |
| EV / EBIT | 22.67 | 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 | 1.2% | 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 | 3.2% | 2.5% | 1.1% | 3.4% | 1.9% | 3.3% | 3.3% | 2.1% | 3.4% | 3.0% | 3.5% |
| FCF Yield | 3.6% | 2.8% | 1.5% | 3.0% | 3.9% | 3.3% | 4.1% | 1.7% | 2.4% | 2.8% | 3.5% |
| Buyback Yield | 0.9% | 0.7% | 0.7% | 0.5% | 1.2% | 0.0% | 1.0% | 0.0% | 0.0% | 0.4% | 0.0% |
| Total Shareholder Yield | 2.0% | 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 |
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 31.3x. The historical average is 43.8x. This places it at the 37th percentile of its historical range.
SAP SE's current EV/EBITDA is 19.9x. 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 31.3x. This is at the 37th 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 1.20% 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.
Key Metrics
Top Statement Risk
Cloud migration margin pressure
Margin Recovery Masks Transition Costs
Operating margin recovered to 26.8% in 2026Q2 from 14.7% in 2024Q2, per reported figures, yet gross margin held near 73%, suggesting pricing power despite cloud infrastructure costs.
The operating margin rebound from the 2024Q2 trough indicates successful cost discipline, but the stability of gross margin around 73% suggests that cloud transition costs are being absorbed without eroding core profitability. However, the net margin of 22.1% in 2026Q2 may be flattered by a low effective tax rate and share-based compensation, warranting scrutiny of earnings quality. Investors should monitor whether the cloud subscription model can sustain these margins as hyperscaler costs scale.
ROIC Recovery Still Below Pre-Transition Peaks
ROIC improved to 4.9% in 2026Q2 from 1.3% in 2024Q1, as reported in financial statements, but remains modest relative to peers like Microsoft's 23.9%, indicating capital efficiency is still recovering.
The upward trajectory in ROIC from the 2024Q1 trough suggests that the cloud transition is gradually improving returns on invested capital, yet the absolute level remains low, partly due to the large goodwill base from acquisitions. The stability of asset turnover near 0.13 indicates that revenue generation per unit of assets is not yet scaling, implying that margin expansion is the primary driver of ROIC improvement. Investors should assess whether the divestiture of Qualtrics and focus on core ERP will accelerate capital efficiency.
Working Capital Swings Signal Transition Volatility
DSO rose to 77 days in 2026Q2 from 64 days in 2025Q4, per reported data, while DPO increased to 91 days, indicating a lengthening cash conversion cycle during the cloud shift.
The increase in days sales outstanding suggests that cloud subscription contracts may be extending collection periods, while the rise in days payable outstanding indicates SAP is leveraging supplier terms to manage cash. The absence of DIO data limits a full CCC calculation, but the widening gap between DSO and DPO implies a potential strain on working capital efficiency. This volatility in working capital is consistent with the prior cash flow analysis showing significant quarterly swings, and investors should monitor whether this is a temporary transition effect or a structural shift.
Leverage Remains Conservative Despite Debt Swings
Debt-to-equity swung from 0.22 in 2026Q2 to zero in 2026Q1, as per financial statements, with interest coverage at 10.31, indicating comfortable debt service despite opportunistic borrowing.
The intermittent debt levels suggest SAP is using short-term borrowings strategically rather than carrying structural leverage, and the interest coverage ratio of 10.31 in 2026Q2 indicates ample earnings to cover interest expenses. The D/EBITDA of 3.35 in 2026Q2 is moderate, but the volatility in this metric (from 8.73 in 2024Q1 to 3.02 in 2025Q4) reflects the timing of debt issuance and EBITDA fluctuations. This conservative leverage profile supports the balance sheet's healthy signal, though investors should watch for any shift toward debt-funded acquisitions.
Liquidity Buffer Adequate but Thin
Current ratio improved to 1.15 in 2026Q2 from 1.03 in 2025Q2, as reported in financial statements, with cash of $10.5B, providing a modest cushion against short-term obligations.
The current ratio remains above 1.0, indicating that current assets cover current liabilities, but the buffer is not substantial, especially given the high proportion of goodwill on the balance sheet. The quick ratio equals the current ratio at 1.15, suggesting that inventory is not a significant factor, which is typical for a software company. Under a severe stress scenario, the $10.5B cash position and strong operating cash flow would likely provide adequate liquidity, but the thin current ratio warrants monitoring if working capital swings persist.
Misapplied Metric: EV/EBITDA
EV/EBITDA of 19.95 appears reasonable versus peers, but it understates SAP's true cost structure because EBITDA excludes share-based compensation and cloud infrastructure costs embedded in operating expenses.
For a software company transitioning to cloud, EBITDA is a misleading profitability measure because it ignores the recurring SBC expense and the significant third-party hosting costs that are part of COGS. A more appropriate metric would be EV/Operating Cash Flow or EV/Unlevered FCF, which better capture the cash generation after these costs. As reported, SAP's P/FCF of 27.49 is notably higher than its EV/EBITDA, suggesting that the market is already pricing in some of these adjustments, but investors should use cash-based multiples to avoid overstating earnings power.