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SAP SESAP -1.11%87 Cash-to-Debt is 1.11 as of Jun. 2026, which is 48% above its 10-year median of 0.75. GuruFocus rates SAP with a GF Score™ of 87/100 and a GF Value™ of $261.74 (Modestly Undervalued). Among 2,838 Software companies, SAP SE ranks worse than 62.61% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. SAP SE's cash to debt ratio for the quarter that ended in Jun. 2026 was 1.11.
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, SAP SEcould pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for SAP SE's Cash-to-Debt or its related term are showing as below:
SAP'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.34 Med: 0.75 Max: 1.42
Current: 1.11
During the past 13 years, SAP SE's highest Cash to Debt Ratio was 1.42. The lowest was 0.34. And the median was 0.75.
SAP's Cash-to-Debt is ranked worse than 62.61% of 2838
companies
in the Software industry
Industry Median: 2.48
vs SAP: 1.11
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
SAP SE Cash-to-Debt Related Terms
SAP SE Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for SAP SE's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Software - Application subindustry, SAP SE's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SAP SE Cash-to-Debt vs Software Industry
For the Software industry and Technology sector, SAP SE's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where SAP SE's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SAP SE (SAP) has a Cash-to-Debt of 1.11 as of Jun. 2026. This is 48% above median its historical median of 0.75. Over the past decade, SAP SE's Cash-to-Debt has ranged from 0.34 to 1.42. According to the industry distribution chart, SAP SE ranks #1777 out of 2838 companies in the Software industry, placing it in the top 62.6%.
Is SAP SE's Cash-to-Debt too high?
SAP SE's current Cash-to-Debt of 1.11 is 48% above median its 10-year median of 0.75. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 1.42. The Software industry median Cash-to-Debt is 2.48. SAP SE's value of 1.11 is 55.2% below this industry median. Based on the distribution chart, SAP SE ranks #1777 out of 2838 companies in the Software industry, which is below the industry midpoint. Overall, SAP SE has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Cash-to-Debt compare to CRM and SHOP?
According to the Software industry distribution chart, SAP SE ranks #1777 out of 2838 companies for Cash-to-Debt. This places SAP SE in the lower half of its industry. The industry median Cash-to-Debt is 2.48. SAP SE's value of 1.11 is 55.2% below this benchmark. Historically, SAP SE's own Cash-to-Debt has ranged from 0.34 to 1.42 over the past decade. While the company's 10-year median is 0.75 vs. the industry median of 2.48, SAP SE has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Software company?
The median Cash-to-Debt among Software companies is 2.48, based on 2,838 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Cash-to-Debt of 1.11 is 55.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Cash-to-Debt is 2.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Cash-to-Debt is 1.11, which is 48% above median its own 10-year median of 0.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SAP SE stock overvalued right now?
Based on GuruFocus' analysis, SAP SE (SAP) is currently considered Modestly Undervalued. The stock's GF Value™ is $261.74, compared to a current price of $209.14 — trading 20.1% below its estimated fair value. The current Cash-to-Debt is 1.11, which is 48% above median its 10-year median of 0.75 and 55.2% below the Software industry median of 2.48. SAP SE's overall GF Score™ is 87/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For SAP SE (SAP), the current Cash-to-Debt is 1.11 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SAP SE (SAP) Overvalued in 2026?
Based on GuruFocus' analysis, SAP SE stock appears to be undervalued.
The current stock price of $209.14 is trading 20.1% below its estimated GF Value™ of $261.74.
GuruFocus considers SAP SE to be Modestly Undervalued.
Key valuation signals for SAP:
Cash-to-Debt: 1.11 (48% above median its 10-year median of 0.75)
GF Value™: $261.74 vs. price of $209.14 (20.1% below fair value)
Industry Position: 55.2% below the Software median (#1777 of 2838)
No single metric tells the full story. See the SAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.
87GF Score
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