SAP SEMEX:SAP1N -24.10%74 Pretax Margin % is 28.74% as of Mar. 2026, which is 32% above its 10-year median of 21.76. GuruFocus rates MEX:SAP1N with a GF Score™ of 74/100 and a GF Value™ of MXN5,652.94. Among 2,823 Software companies, SAP SE ranks better than 92.45% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. SAP SE's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN57,246 Mil. SAP SE's Revenue for the
three
months ended in Mar. 2026 was MXN199,194 Mil. Therefore, SAP SE's pretax margin for the quarter that ended in Mar. 2026 was 28.74%.
The historical rank and industry rank for SAP SE's Pretax Margin % or its related term are showing as below:
MEX:SAP1N'
s Pretax Margin % Range Over the Past 10 Years
Min: 13.94 Med: 21.76 Max: 31.55
Current: 28.25
MEX:SAP1N's Pretax Margin % is ranked better than 92.45% of 2823
companies
in the Software industry
Industry Median: 3.53
vs MEX:SAP1N: 28.25
SAP SE (MEX:SAP1N) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
SAP SE Pretax Margin % Related Terms
SAP SE Pretax Margin % Historical Data
* Premium members only.
The historical data trend for SAP SE's Pretax Margin % 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.
MEX:SAP1N vs CRM, SHOP, UBER: Pretax Margin % Comparison
For the Software - Application subindustry, SAP SE's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, SAP SE's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where SAP SE's Pretax Margin % 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 (MEX:SAP1N) has a Pretax Margin % of 28.74% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on SAP SE and its competitors. This is 32% above median its historical median of 21.76. Over the past decade, SAP SE's Pretax Margin % has ranged from 13.94 to 31.55. According to the industry distribution chart, SAP SE ranks #213 out of 2823 companies in the Software industry, placing it in the top 7.5%.
Is SAP SE's Pretax Margin % too high?
SAP SE's current Pretax Margin % of 28.74% is 32% above median its 10-year median of 21.76. Over the past 10 years, this metric has ranged from a low of 13.94 to a high of 31.55. The Software industry median Pretax Margin % is 3.53. SAP SE's value of 28.74% is 714.2% above this industry median. Based on the distribution chart, SAP SE ranks #213 out of 2823 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SAP SE has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Pretax Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, SAP SE ranks #213 out of 2823 companies for Pretax Margin %. This places SAP SE in the top 8% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.53. SAP SE's value of 28.74% is 714.2% above this benchmark. Historically, SAP SE's own Pretax Margin % has ranged from 13.94 to 31.55 over the past decade. While the company's 10-year median is 21.76 vs. the industry median of 3.53, SAP SE has consistently been above 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 Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Pretax Margin % of 28.74% is 714.2% above 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on SAP SE and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Pretax Margin % is 28.74%, which is 32% above median its own 10-year median of 21.76. 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?
SAP SE (MEX:SAP1N) has a current Pretax Margin % of 28.74%. The stock's GF Value™ is MXN5,652.94, compared to a current price of MXN2,640.84 — trading 53.3% below its estimated fair value. The current Pretax Margin % is 28.74%, which is 32% above median its 10-year median of 21.76 and 714.2% above the Software industry median of 3.53. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For SAP SE (MEX:SAP1N), the current Pretax Margin % is 28.74% 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 (MEX:SAP1N) Overvalued in 2026?
Based on GuruFocus' analysis, SAP SE stock appears to be undervalued.
The current stock price of MXN2,640.84 is trading 53.3% below its estimated GF Value™ of MXN5,652.94.
Key valuation signals for MEX:SAP1N:
Pretax Margin %: 28.74% (32% above median its 10-year median of 21.76)
GF Value™: MXN5,652.94 vs. price of MXN2,640.84 (53.3% below fair value)
Industry Position: 714.2% above the Software median (#213 of 2823)
No single metric tells the full story. See the MEX:SAP1N 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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