SAP SE ADS (SAP)
FairStock Score: 60/100 — STEADY
Key Financials
| Current Price | $238.14 |
| Market Cap | $192.5B |
| P/E Ratio | 31.05 |
| ROE | 18.32% |
| Dividend Yield | 1.4% |
| Sector | Technology |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I am looking for a business I can understand, with durable competitive advantages, honest accounting and a price that leaves a margin of safety. SAP sells mission-critical enterprise software for finance, HR, supply chain and AI; that kind of installed base can create switching costs. In fiscal Q2 2026, the latest quarter, revenue was $9.9B, net income was $2.2B, and the net margin was 22.07%. The balance sheet looks conservative: debt-to-equity is 0.22, Piotroski is 8/9, and Altman Z is 5.00. Free cash flow is $8.7B, a 4.5% FCF yield. Returns are good but not spectacular: ROE 18.32%, ROCE 9.54%. At the 2026-10-13 close of $219.75, FairStock calculates P/E 28.65, P/B 69.10, PEG 1.01, EV/EBITDA 14.95, and dividend yield 1.40%. The P/B is the red flag; I am paying a huge multiple of book value. Graham Number is $81.79, so the margin of safety is -168.68%. This is not a Graham bargain. The market is paying for growth and quality. The supplied growth data points to expansion, though the period is not labeled. If SAP keeps compounding cash flow and defending its enterprise position, the price may be fair; if growth normalizes, the multiple offers little protection. I would call it a wonderful business, but not a cheap one.
In plain English: SAP sells business software that helps companies manage finance, HR, supply chains and AI. The business looks strong, with solid profits, little debt and plenty of cash flow. But the stock price looks expensive compared with the company's assets and profits.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer