Stock fact sheet · data as of
SAP SE (SAP): fair value, margin of safety and Wheel Score
Ticker symbol SAP · Technology · Software - Application · Germany · ADR · Growth Quality
SAP is an American depositary share (ADR): the US listing of SAP SE, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is SAP undervalued?
SAP closed at 240.04 on 5 Nov 2026, which is 29% above the GLS average fair value of 185.59 from 9 models. 5 of them value the shares below today's price. Our scans read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.
The 9 models disagree widely: DDM gives 41.79 while GLS Growth gives 372.15. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, SAP is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 19, growth score 59, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for SAP
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 117.06 | -51% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 86.94 | -64% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 279.84 | +17% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 110.10 | -54% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 372.15 | +55% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 245.41 | +2% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 330.71 | +38% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 41.79 | -83% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 86.28 | -64% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -4.71 | -102% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 352.17 | +47% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health SAP scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.0 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 13.6%, ROE 16.0%, ROA 10.2% - with debt at 0.18 times equity and a free-cash-flow yield of 3.7%.
The dividend yield is 1.18% with a payout ratio of 36% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Cloud 64%, Software support 25%, Services 10% (quarter Q2 FY2026).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 13.6% |
|---|---|---|---|
| GLS Moat | 8.0 / 10 | ROE | 16.0% |
| Debt / equity | 0.18 | ROA | 10.2% |
| Free-cash-flow yield | 3.7% | Payout ratio | 36% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 1 / 10 |
Wheel Score 47: Weak
SAP scores 47 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 29% above our fair value, and the parts are thin too - value weak, premium strong, moat strong, health good, red flags good, option trading good, stability strong. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 35% on the near-the-money contracts 20-60 days out: enough to pass the 25-80% Wheel Trade Filter, but under the 35-60% sweet spot the score rewards most. Chain open interest is 44,107 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.9M shares a day on a market cap of $279.7B, with a beta of 0.76 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 29% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 29% above fair value | |
| Premium | Strong | implied volatility 35% | |
| Moat | Strong | moat 8.0/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Good | 4,042 contracts a day, 44,107 open interest | |
| Stability | Strong | beta 0.76, $279.7B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 28 Jan 2027, 84 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to SAP SE by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SHOP Shopify Inc. | 153.03 | 52.98 | -189% | 43Weak | $196.9B |
| CRM Salesforce, Inc. | 227.11 | 317.89 | +29% | 88Prime | $186.9B |
| UBER Uber Technologies, Inc. | 69.87 | 82.94 | +16% | 81Good | $142.7B |
| ADP Automatic Data Processing, Inc. | 303.54 | 211.37 | -44% | 43Weak | $119.8B |
| NOW ServiceNow, Inc. | 108.81 | 71.15 | -53% | 44Weak | $112.9B |
| SNOW Snowflake Inc. | 290.60 | 70.56 | -312% | 35Weak | $102.5B |
| ADBE Adobe Inc. | 248.48 | 361.15 | +31% | 95Prime | $96.7B |
| INTU Intuit Inc. | 356.64 | 406.72 | +12% | 85Prime | $95.3B |
| APP AppLovin Corporation | 271.75 | 385.84 | +30% | 44Weak | $91.3B |
| CDNS Cadence Design Systems, Inc. | 329.52 | 111.33 | -196% | 45Weak | $90.4B |
| DDOG Datadog, Inc. | 188.72 | 33.55 | -462% | 41Weak | $67.8B |
| MSTR Strategy Inc | 142.54 | - | - | 28Weak | $57.4B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SAP
Is SAP undervalued right now?
No: at 240.04 the stock trades 29% above the GLS average fair value of 185.59 (data as of 5 Nov 2026). The margin of safety is negative.
What is the Wheel Score of SAP and what does it mean?
SAP scores 47 out of 100 (Weak) - it fails Wheel Trade Filter 3. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for SAP?
185.59 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does SAP SE report earnings next?
The next earnings report is due on 28 Jan 2027, 84 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does SAP have listed options, and how liquid are they?
Yes. The nightly snapshot found 590 listed contracts with 44,107 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is SAP an ADR?
Yes. SAP is an American depositary share (ADR): the US listing of SAP SE, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.