SAPNEUTRAL

SAP PEG Ratio Analysis

2.92x

Updated 125h ago·SEC filings & market data

Key Takeaway

The current PEG ratio of 2.92x means the stock's price is 2.92 times its expected earnings growth rate—a lower number typically indicates better value relative to growth.

Sector Performance

83th percentile

SAP

2.92x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

2.95x(Jun 2026)

↑ Improving
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Deep Analysis

The current PEG ratio of 2.92x means the stock's price is 2.92 times its expected earnings growth rate—a lower number typically indicates better value relative to growth.

Compared to sector peers, the median PEG is 0.92x, placing SAP in the 82nd percentile, meaning it is more expensive than most companies in its sector. Trend data is limited: year-over-year change is not available, but quarter-over-quarter the metric decreased by 1.0%, from 2.95x to 2.92x. A high PEG level combined with a very slight downward trend suggests the stock remains priced at a premium to its growth prospects, though the small decline could hint at some moderation. This elevated PEG ratio contradicts a bullish stance and instead supports the overall NEUTRAL verdict by highlighting a valuation that offers limited upside without stronger growth justification.

Frequently Asked Questions

What does the PEG Ratio tell investors about SAP?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

Who are SAP's closest peers by PEG Ratio?

The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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SAP

2.92x

Sector Median

0.97x

Sector Avg

2.92x

How SAP's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.