SAP SEHAM:SAP -2.58%74 Interest Coverage is 9.42 as of Mar. 2026, which is 33% below its 10-year median of 14.01. GuruFocus rates HAM:SAP with a GF Score™ of 74/100 and a GF Value™ of €217.30 (Significantly Undervalued). Among 1,707 Software companies, SAP SE ranks worse than 54.01% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. SAP SE's
Operating Income
for the
three
months ended in Mar. 2026 was €2,752 Mil. SAP SE's Interest Expense for the
three
months ended in Mar. 2026 was €-292 Mil.
SAP SE's interest coverage for the quarter that ended in Mar. 2026 was 9.42.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for SAP SE's Interest Coverage or its related term are showing as below:
HAM:SAP'
s Interest Coverage Range Over the Past 10 Years
Min: 6.84 Med: 14.01 Max: 19.93
Current: 19.88
HAM:SAP's Interest Coverage is ranked worse than 54.01% of 1707
companies
in the Software industry
Industry Median: 24.65
vs HAM:SAP: 19.88
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
SAP SE Interest Coverage Related Terms
SAP SE Interest Coverage Historical Data
* Premium members only.
The historical data trend for SAP SE's Interest Coverage 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: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HAM:SAP vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, SAP SE's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, SAP SE's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SAP SE's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (HAM:SAP) has a Interest Coverage of 9.42 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SAP SE and its competitors. This is 33% below median its historical median of 14.01. Over the past decade, SAP SE's Interest Coverage has ranged from 6.84 to 19.93. According to the industry distribution chart, SAP SE ranks #922 out of 1707 companies in the Software industry, placing it in the top 54%.
Is SAP SE's Interest Coverage too high?
SAP SE's current Interest Coverage of 9.42 is 33% below median its 10-year median of 14.01. Over the past 10 years, this metric has ranged from a low of 6.84 to a high of 19.93. The Software industry median Interest Coverage is 24.65. SAP SE's value of 9.42 is 61.8% below this industry median. Based on the distribution chart, SAP SE ranks #922 out of 1707 companies in the Software industry, which is below the industry midpoint. Overall, SAP SE has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, SAP SE ranks #922 out of 1707 companies for Interest Coverage. This places SAP SE in the lower half of its industry. The industry median Interest Coverage is 24.65. SAP SE's value of 9.42 is 61.8% below this benchmark. Historically, SAP SE's own Interest Coverage has ranged from 6.84 to 19.93 over the past decade. While the company's 10-year median is 14.01 vs. the industry median of 24.65, 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Interest Coverage of 9.42 is 61.8% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SAP SE and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Interest Coverage is 9.42, which is 33% below median its own 10-year median of 14.01. 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 (HAM:SAP) is currently considered Significantly Undervalued. The stock's GF Value™ is €217.30, compared to a current price of €131.18 — trading 39.6% below its estimated fair value. The current Interest Coverage is 9.42, which is 33% below median its 10-year median of 14.01 and 61.8% below the Software industry median of 24.65. SAP SE's overall GF Score™ is 74/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For SAP SE (HAM:SAP), the current Interest Coverage is 9.42 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 (HAM:SAP) Overvalued in 2026?
Based on GuruFocus' analysis, SAP SE stock appears to be undervalued.
The current stock price of €131.18 is trading 39.6% below its estimated GF Value™ of €217.30.
GuruFocus considers SAP SE to be Significantly Undervalued.
Key valuation signals for HAM:SAP:
Interest Coverage: 9.42 (33% below median its 10-year median of 14.01)
GF Value™: €217.30 vs. price of €131.18 (39.6% below fair value)
Industry Position: 61.8% below the Software median (#922 of 1707)
No single metric tells the full story. See the HAM: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.
74GF Score
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