SAP (SAP SE) GF Value Rank: 4 (As of Jul. 16, 2026) — 33% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

SAP SAP SE SAP
77 GF Score
Price $155.91
GF Value $250.89
Valuation Significantly Undervalued
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What is SAP SE GF Value Rank?

SAP SE SAP +0.71% 77 GF Value Rank is 4 as of Jul. 16, 2026, which is 33% below its 10-year median of 6.00. GuruFocus rates SAP with a GF Score™ of 77/100 and a GF Value™ of $250.89 (Significantly Undervalued).

SAP SE has the GF Value Rank of 4.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

SAP vs UBER, SHOP, CRM: GF Value Rank Comparison

For the Software - Application subindustry, SAP SE's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank vs Software Industry

For the Software industry and Technology sector, SAP SE's GF Value Rank distribution charts can be found below:

* The bar in red indicates where SAP SE's GF Value Rank falls into.


SAP
77GF Score
SAP SE SAP
GF Value Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about GF Value Rank →
What does a GF Value Rank of 4 mean?
SAP SE (SAP) has a GF Value Rank of 4 as of Jul. 16, 2026. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on SAP SE and its competitors. This is 33% below median its historical median of 6.00. Over the past decade, SAP SE's GF Value Rank has ranged from 1.00 to 10.00.
Is SAP SE's GF Value Rank too high?
SAP SE's current GF Value Rank of 4 is 33% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 10.00. 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 GF Value Rank compare to UBER and SHOP?
SAP SE's GF Value Rank of 4 can be compared against companies in the Software industry. Historically, SAP SE's own GF Value Rank has ranged from 1.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good GF Value Rank for a Software company?
A good GF Value Rank depends on the Software industry context. However, GF Value Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high GF Value Rank mean?
A high GF Value Rank can signal that a stock is expensive relative to its fundamentals. GF Value Rank is given based on historical multiples along with past returns, growth and future estimates of the business' performance. View historical data on SAP SE and its competitors. SAP SE's current GF Value Rank is 4, which is 33% below median its own 10-year median of 6.00. 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 $155.91 — trading 37.9% below its estimated fair value. The current GF Value Rank is 4, which is 33% below median its 10-year median of 6.00. 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 GF Value Rank calculated?
GF Value Rank is calculated from a company's financial statements. For SAP SE (SAP), the current GF Value Rank is 4 as of Jul. 16, 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 $155.91 is trading 37.9% below its estimated GF Value™ of $250.89. GuruFocus considers SAP SE to be Significantly Undervalued.

Key valuation signals for SAP:

  • GF Value Rank: 4 (33% below median its 10-year median of 6.00)
  • GF Value™: $250.89 vs. price of $155.91 (37.9% below fair value)
  • GF Score™: 77/100

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.

SAP SE Business Description

Address Dietmar-Hopp-Allee 16, Walldorf, BW, DEU, 69190
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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GF Value Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$155.91
Price
$250.89
GF Value