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SAP SEHAM:SAP +0.18%76 Return-on-Tangible-Asset is 19.14% as of Mar. 2026, which is 9% above its 10-year median of 17.55. GuruFocus rates HAM:SAP with a GF Score™ of 76/100 and a GF Value™ of €220.53 (Significantly Undervalued). Among 2,885 Software companies, SAP SE ranks better than 90.4% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. SAP SE's annualizedNet Income for the quarter that ended in Mar. 2026 was €7,728 Mil. SAP SE's average total tangible assets for the quarter that ended in Mar. 2026 was €40,386 Mil. Therefore, SAP SE's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 19.14%.
The historical rank and industry rank for SAP SE's Return-on-Tangible-Asset or its related term are showing as below:
HAM:SAP'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.4 Med: 17.55 Max: 23.05
Current: 18.45
During the past 13 years, SAP SE's highest Return-on-Tangible-Asset was 23.05%. The lowest was 6.40%. And the median was 17.55%.
HAM:SAP's Return-on-Tangible-Asset is ranked better than 90.4% of 2885
companies
in the Software industry
Industry Median: 2.04
vs HAM:SAP: 18.45
SAP SE (HAM:SAP) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
SAP SE Return-on-Tangible-Asset Related Terms
SAP SE Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for SAP SE's Return-on-Tangible-Asset 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.
HAM:SAP vs UBER, SHOP, CRM: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, SAP SE's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, SAP SE's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where SAP SE's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 19.14% mean?
SAP SE (HAM:SAP) has a Return-on-Tangible-Asset of 19.14% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SAP SE and its competitors. This is near median its historical median of 17.55. Over the past decade, SAP SE's Return-on-Tangible-Asset has ranged from 6.40 to 23.05. According to the industry distribution chart, SAP SE ranks #277 out of 2885 companies in the Software industry, placing it in the top 9.6%.
Is SAP SE's Return-on-Tangible-Asset too high?
SAP SE's current Return-on-Tangible-Asset of 19.14% is near median its 10-year median of 17.55. Over the past 10 years, this metric has ranged from a low of 6.40 to a high of 23.05. The Software industry median Return-on-Tangible-Asset is 2.04. SAP SE's value of 19.14% is 838.2% above this industry median. Based on the distribution chart, SAP SE ranks #277 out of 2885 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 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Return-on-Tangible-Asset compare to UBER and SHOP?
According to the Software industry distribution chart, SAP SE ranks #277 out of 2885 companies for Return-on-Tangible-Asset. This places SAP SE in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. SAP SE's value of 19.14% is 838.2% above this benchmark. Historically, SAP SE's own Return-on-Tangible-Asset has ranged from 6.40 to 23.05 over the past decade. While the company's 10-year median is 17.55 vs. the industry median of 2.04, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,885 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Return-on-Tangible-Asset of 19.14% is 838.2% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SAP SE and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Return-on-Tangible-Asset is 19.14%, which is near median its own 10-year median of 17.55. 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 €220.53, compared to a current price of €137.02 — trading 37.9% below its estimated fair value. The current Return-on-Tangible-Asset is 19.14%, which is near median its 10-year median of 17.55 and 838.2% above the Software industry median of 2.04. SAP SE's overall GF Score™ is 76/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For SAP SE (HAM:SAP), the current Return-on-Tangible-Asset is 19.14% 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 €137.02 is trading 37.9% below its estimated GF Value™ of €220.53.
GuruFocus considers SAP SE to be Significantly Undervalued.
Key valuation signals for HAM:SAP:
Return-on-Tangible-Asset: 19.14% (near median its 10-year median of 17.55)
GF Value™: €220.53 vs. price of €137.02 (37.9% below fair value)
Industry Position: 838.2% above the Software median (#277 of 2885)
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.
76GF Score
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