On July 29, 2026, SAP SE SAP shares rose 3.8%, closing at $185.99, as the stock continues to show positive momentum after a recent rally. The stock has fluctuated between a 52-week high of $299.48 and a low of $144.97, indicating significant volatility over the past year.
- GF Valueâ„¢ verdict: Current price is $185.99, which is 25.4% undervalued compared to the GF Valueâ„¢ of $249.39.
- GF Scoreâ„¢ stands at 81/100, indicating a strong overall rating.
- Notable signal: Financial Strength rated 8/10, suggesting solid fundamentals.
Is SAP Overvalued or Undervalued?
According to the GF Valueâ„¢, SAP SE is currently undervalued, with a notable margin of safety. The current share price of $185.99 is significantly lower than the GF Valueâ„¢ estimate of $249.39, representing a 25.4% upside potential. The GF Valueâ„¢ is GuruFocus' proprietary intrinsic value assessment, which considers historical trading multiples, past business growth, and future performance projections to determine a fair value for the stock. Being labeled as "modestly undervalued" suggests that SAP offers an attractive investment opportunity, though investors should remain cautiously optimistic given the stock's historical price volatility and current momentum trends.
How Does SAP's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 23.5x | 33.7x |
| Forward P/E | 22.5x | N/A |
The current P/E ratio of 23.5x is approximately 30% below its 5-year median P/E of 33.7x, indicating that the stock is trading at a discount relative to its historical valuation metrics. This analysis aligns with the GF Valueâ„¢ verdict, reinforcing the conclusion that SAP is currently undervalued.
What Does SAP's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a comprehensive rating that evaluates both the financial health and growth potential of a company. SAP's GF Scoreâ„¢ of 81/100 reflects strong fundamentals, with high marks in several key areas.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 81/100 |
| Financial Strength | 8/10 |
| Profitability | 8/10 |
| Growth | 8/10 |
| Valuation | 8/10 |
| Momentum | 2/10 |
With strong scores in Financial Strength, Profitability, Growth, and Valuation, SAP demonstrates solid operational capabilities. However, the low Momentum Rank of 2/10 indicates that the stock may be facing challenges in sustaining upward price movement, which is a critical factor to consider for potential investors.
What Are Gurus and Insiders Doing with SAP?
Currently, 12 gurus hold shares of SAP, with 9 of them increasing their positions while 3 have trimmed their holdings in recent quarters. This uptick in guru activity suggests that knowledgeable investors remain confident in SAP's future prospects. Notably, there have been no insider transactions in the last three months, which could indicate stability or a wait-and-see approach among insiders regarding the company's future performance.
What This Means for Investors
Based on the analysis, SAP SE appears to be undervalued according to the GF Valueâ„¢ framework, providing an opportunity for potential gains based on its intrinsic value. The strong GF Scoreâ„¢ on multiple fronts coupled with guru confidence highlights that SAP could be a compelling option for those looking to enter or expand their position in the software sector. For more detailed insights, visit the SAP SE SAP stock page.
Frequently Asked Questions
What is SAP's GF Scoreâ„¢?
SAP's GF Scoreâ„¢ is 81/100, indicating a strong ranking based on its financial health and growth potential.
Is SAP overvalued or undervalued?
According to the GF Valueâ„¢, SAP is currently undervalued, with a 25.4% upside to its intrinsic value.
What is SAP's P/E ratio?
SAP's P/E ratio is 23.5x, which is significantly lower than its 5-year median P/E of 33.7x, suggesting the stock is trading at a discount relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
