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SAP SESAP -0.51%77 Debt-to-EBITDA is 0.59 as of Mar. 2026, which is 60% below its 10-year median of 1.46. GuruFocus rates SAP with a GF Score™ of 77/100 and a GF Value™ of $250.89 (Significantly Undervalued). Among 1,716 Software companies, SAP SE ranks better than 62.24% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for SAP SE's Debt-to-EBITDA or its related term are showing as below:
SAP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.62 Med: 1.46 Max: 2.02
Current: 0.64
During the past 13 years, the highest Debt-to-EBITDA Ratio of SAP SE was 2.02. The lowest was 0.62. And the median was 1.46.
SAP's Debt-to-EBITDA is ranked better than 62.24% of 1716
companies
in the Software industry
Industry Median: 1.09
vs SAP: 0.64
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
SAP SE Debt-to-EBITDA Related Terms
SAP SE Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for SAP SE's Debt-to-EBITDA 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.
For the Software - Application subindustry, SAP SE's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, SAP SE's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where SAP SE's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
SAP SE (SAP) has a Debt-to-EBITDA of 0.59 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SAP SE. This is 60% below median its historical median of 1.46. Over the past decade, SAP SE's Debt-to-EBITDA has ranged from 0.62 to 2.02. According to the industry distribution chart, SAP SE ranks #648 out of 1716 companies in the Software industry, placing it in the top 37.8%.
Is SAP SE's Debt-to-EBITDA too high?
SAP SE's current Debt-to-EBITDA of 0.59 is 60% below median its 10-year median of 1.46. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 2.02. The Software industry median Debt-to-EBITDA is 1.09. SAP SE's value of 0.59 is 45.9% below this industry median. Based on the distribution chart, SAP SE ranks #648 out of 1716 companies in the Software industry, which is above the industry midpoint. Overall, SAP SE has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Debt-to-EBITDA compare to UBER and SHOP?
According to the Software industry distribution chart, SAP SE ranks #648 out of 1716 companies for Debt-to-EBITDA. This puts SAP SE in the upper half of its industry. The industry median Debt-to-EBITDA is 1.09. SAP SE's value of 0.59 is 45.9% below this benchmark. Historically, SAP SE's own Debt-to-EBITDA has ranged from 0.62 to 2.02 over the past decade. While the company's 10-year median is 1.46 vs. the industry median of 1.09, 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Debt-to-EBITDA of 0.59 is 45.9% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on SAP SE. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Debt-to-EBITDA is 0.59, which is 60% below median its own 10-year median of 1.46. 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 Significantly Undervalued. The stock's GF Value™ is $250.89, compared to a current price of $155.12 — trading 38.2% below its estimated fair value. The current Debt-to-EBITDA is 0.59, which is 60% below median its 10-year median of 1.46 and 45.9% below the Software industry median of 1.09. SAP SE's overall GF Score™ is 77/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For SAP SE (SAP), the current Debt-to-EBITDA is 0.59 as of Mar. 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 $155.12 is trading 38.2% below its estimated GF Value™ of $250.89.
GuruFocus considers SAP SE to be Significantly Undervalued.
Key valuation signals for SAP:
Debt-to-EBITDA: 0.59 (60% below median its 10-year median of 1.46)
GF Value™: $250.89 vs. price of $155.12 (38.2% below fair value)
Industry Position: 45.9% below the Software median (#648 of 1716)
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.
77GF Score
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