Is SAP Stock (SAP) a Good Investment?

By AAII Staff
December 13, 2025
Featured Tickers:
SAP

Learn more about whether SAP SE is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (SAP) grades on certain investment factors and determine whether it meets your investment needs.

Latest SAP SE Stock News

As of December 12, 2025, SAP SE had a $284.7 billion market capitalization, putting it in the 99th percentile of companies in the Software industry.

Currently, SAP SE’s price-earnings ratio is 34.6. SAP SE’s trailing 12-month revenue is $42.8 billion with a 19.4% profit margin. Year-over-year quarterly sales growth most recently was 12.7%. Analysts expect adjusted earnings to reach $6.941 per share for the current fiscal year. SAP SE currently has a 1.1% dividend yield.



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Grading SAP SE Stock

Before you choose to buy, sell or hold SAP SE stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (SAP) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at SAP SE’s stock grades for value, growth and quality. Learn more about A+ Investor here!

SAP SE Stock Growth Grade

Growth Grade:

Metric Metric Score SAP Sector Median
Sales Growth 5yr Ann'l 60 2.7% 9.0%
Sales Increases YoY Last 5 yrs 80 4 of 5 3 of 5
Cash from Operations Ann'l Positive Last 5 yrs 100 5 of 5 4 of 5

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components‐consistency of annual sales growth, five‐year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.

SAP SE has a Growth Score of 75, which is Strong.

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SAP SE Stock Momentum Grade

Momentum Grade:

Metric Score SAP Sector Median
Relative Price Strength (Q1) 43 (6.7%) (7.0%)
Relative Price Strength (Q2) 16 (21.7%) (1.7%)
Relative Price Strength (Q3) 70 3.5% (2.5%)
Relative Price Strength (Q4) 79 15.8% (6.7%)
Relative Price Strength (weighted 4 qtr) 43 (3.2%) (2.3%)

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

SAP SE has a Momentum Score of 43, which is Average.

SAP SE Stock Earnings Estimate Revisions Grade

Estimate Revisions Grade:

Metric Score SAP Sector Median
Quarterly Surprise SUE Latest Qtr 42 0.8 2.3
Quarterly Surprise SUE Prior Qtr 41 0.7 2.2
EPS Est Current Year % Rev Last Month 14 (3.0%) 0.0%
EPS Est Current Year % Rev 3 Mos 29 (3.0%) 2.9%

The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

SAP SE has an Earnings Estimate Revisions Score of 32, which is Negative.

Other SAP SE Stock Grades

In addition to Growth, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Quality.

Invest with Confidence with A+ Investor

AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F—Score.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether SAP SE’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy SAP SE Stock?

Overall, SAP SE stock has a Growth Grade of B, Momentum Grade of C Earnings Estimate Revisions Grade of D.

Whether or not you should buy SAP SE stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how SAP SE stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

SAP SE (SAP) Competitors

Companies similar to SAP SE in the Software industry.

Company name Ticker Market Cap
AppLovin Corporation APP $226.66Bil
Salesforce, Inc. CRM $245.71Bil
Intuit Inc. INTU $186.79Bil
ServiceNow, Inc. NOW $179.93Bil
Microsoft Corporation MSFT $3556.62Bil

SAP SE Stock: Bottom Line

You can use the information about how SAP SE is graded to determine if you should invest in this stock. However, you should decide whether SAP SE’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether SAP SE is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

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