SAP

OVERVALUEDSAP · NYSE · Technology
SAP·NYSE·Technology
OVERVALUED
SAP
15.8%downside
MARKET PRICE
$170.10
FAIR PRICE
$143.28
MARGIN
$26.82
UNDERVALUEDFAIROVERVALUED
P/E RATIO
23.5x
DIV. YIELD
2.74%
ROE
16.0%
MARKET CAP
$172B
FPI
fairpriceindex.com

FAIR PRICE VALUATION

15.8%downside

Updated daily

Model: DCF 50% · Relative 30% · Consensus 20%

MARKET PRICE

$170.10

FAIR PRICE

$143.28

MARGIN

$26.82

UNDERVALUEDFAIROVERVALUED

P/E Ratio

23.5x

What is P/E? →

Div. Yield

2.74%

ROE

16.0%

Strong

Market Cap

$172B

Large-cap

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FPI RATING

7.1/ 10

Attractive valuation and low debt levels, but limited growth momentum.

Analytical data, not an investment recommendation. Updated daily.

How we calculate this ↗

MARGIN OF SAFETY

A 20% margin of safety below fair value — the conservative entry level for risk-aware investors.

$114.62CONSERVATIVE ENTRY
$143.28FAIR PRICE
$170.10MARKET PRICE

SAFETY MARGIN

20%

Below fair value

ENTRY LEVEL

$114.62

Fair price × 0.80

DISTANCE

32.6%

Price to entry level

At the current price of $170.10, SAP trades 32.6% above the conservative entry level of $114.62. This entry level represents a 20% margin of safety below the calculated fair price of $143.28 — a buffer that accounts for estimation uncertainty in the valuation model.

Margin of safety is a risk management concept, not an investment recommendation. The 20% threshold follows Benjamin Graham's value investing framework. Fair price and entry levels are model-based estimates updated daily. Learn more about Margin of Safety ↗

VALUATION HISTORY

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P/E RATIO HISTORY

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METHODOLOGY

How we calculate SAP's fair price

SAP's fair price of $143.28 is derived from a blended model that combines DCF analysis (50%), relative valuation against Technology peers using metrics like P/E and EV/EBITDA (30%), and analyst consensus (20%). At the current market price of $170.10, SAP trades 15.8% above its calculated fair value.

DCF MODEL · 50%

Discounted free cash flow analysis based on projected cash flows, discounted at a rate reflecting SAP's risk profile.

RELATIVE · 30%

Comparing SAP's valuation multiples against Technology peers to determine if the stock is over or undervalued relative to its industry.

ANALYST · 20%

Aggregated analyst price targets for SAP, weighted by recency and analyst accuracy.

TRY IT YOURSELF

Want to test your own assumptions? Use our free calculators to estimate SAP's fair value with your own inputs.

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FAQ

What is the fair price of SAP?+

Based on our blended model combining DCF analysis (50%), relative valuation against Technology peers (30%), and analyst consensus (20%), the fair price for SAP is $143.28. At the current market price of $170.10, SAP trades 15.8% above its calculated fair value.

Is SAP overvalued or undervalued?+

SAP is currently overvalued based on our valuation model. The stock trades at $170.10, which is 15.8% above the fair price of $143.28. The P/E ratio of 23.5x is a key metric in the valuation.

What is the margin of safety for SAP?+

With a 20% margin of safety applied to the fair price of $143.28, the conservative entry level for SAP is $114.62. At the current market price of $170.10, the stock trades 32.6% above this entry level. Margin of safety is a risk management concept from Benjamin Graham's value investing framework, not an investment recommendation.

How often is SAP's fair price updated?+

We update fair price calculations for SAP daily after market close. The current fair price of $143.28 incorporates the latest market data and sector multiples.

What factors affect SAP's fair price calculation?+

SAP's fair price of $143.28 is derived from DCF analysis (50% weight), relative valuation against Technology peers (30% weight), and analyst consensus (20% weight). Key metrics include P/E of 23.5x, ROE of 16.0%, and dividend yield of 2.74%.

Is SAP a good buy right now?+

At $170.10, SAP trades 15.8% above our fair value estimate of $143.28. The stock is currently overvalued. ROE stands at 16.0% (strong). Fair Price Index provides valuation data — always do your own research before investing.

Does SAP pay dividends?+

SAP has a dividend yield of 2.74%.

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Fair Price Index is for informational purposes only and does not constitute investment advice. Fair value calculations are model-based estimates and may not reflect actual market conditions. Always conduct your own research before making investment decisions.