SAP PEG Ratio Analysis
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 percentileSAP
2.92x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
2.95x(Jun 2026)
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).
Learn More About PEG Ratio
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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2.92x
Sector Median
0.97x
Sector Avg
2.92x
How SAP's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.