SAP SE
LSE:0NW4
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (27.7), the stock would be worth €252.56 (71% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 16.2 | €147.82 |
0%
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| 3-Year Average | 27.7 | €252.56 |
+71%
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| 5-Year Average | 21.7 | €197.86 |
+34%
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| Industry Average | 17.9 | €163.13 |
+10%
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| Country Average | 15.5 | €141.78 |
-4%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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€169.9B
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/ |
Jan 2026
€10.4B
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= |
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€169.9B
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/ |
Dec 2026
€12.1B
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= |
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€169.9B
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/ |
Dec 2027
€14B
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= |
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€169.9B
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/ |
Dec 2028
€15.9B
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= |
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€169.9B
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/ |
Dec 2029
€18.7B
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= |
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€169.9B
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/ |
Dec 2030
€22.5B
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| DE |
|
SAP SE
LSE:0NW4
|
171.8B EUR | 16.2 | 23.4 | |
| US |
|
Ezenia! Inc
OTC:EZEN
|
567B USD | -177 298 | -180 630.8 | |
| US |
|
Palantir Technologies Inc
NASDAQ:PLTR
|
341B USD | 235.8 | 209.4 | |
| US |
|
Salesforce Inc
NYSE:CRM
|
166.9B USD | 18.8 | 22.4 | |
| US |
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Applovin Corp
NASDAQ:APP
|
151.7B USD | 36.8 | 45.5 | |
| US |
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Intuit Inc
NASDAQ:INTU
|
109.9B USD | 20.4 | 25.3 | |
| US |
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Adobe Inc
NASDAQ:ADBE
|
99.6B USD | 10.9 | 13.8 | |
| US |
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Synopsys Inc
NASDAQ:SNPS
|
95.9B USD | 105.3 | 87 | |
| US |
N
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NCR Corp
LSE:0K45
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86.7B USD | 604.2 | 2 065.2 | |
| US |
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Cadence Design Systems Inc
NASDAQ:CDNS
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90.5B USD | 54.2 | 81.6 | |
| US |
|
Microstrategy Inc
NASDAQ:MSTR
|
60.4B USD | -13.1 | -12.6 |
Market Distribution
| Min | 0.1 |
| 30th Percentile | 10.6 |
| Median | 15.5 |
| 70th Percentile | 23.1 |
| Max | 672.9 |
Other Multiples
SAP SE
Glance View
SAP SE, launched in the early 1970s by five former IBM employees, transformed Germany's technology landscape with its pioneering approach to enterprise resource planning (ERP) software. The founders, envisioning a solution to optimize business processes, created a system that seamlessly integrated various functions like finance, human resources, and logistics into a single platform. This innovative approach allowed companies to enhance efficiency, transparency, and decision-making capabilities. Over the decades, SAP has not only refined its core ERP applications but has also expanded its suite with a wide range of business software solutions, including supply chain management, customer relationship management, and data analytics, leveraging the power of cloud computing to solidify its place as a dominant force in the global software market. SAP's revenue model hinges on licensing fees for its software products and subscription-based services. Its traditional on-premise solutions require an upfront investment for licenses and ongoing maintenance fees, while its cloud offerings cater to businesses looking for scalable, pay-as-you-go solutions. Furthermore, SAP generates revenue through professional services, advisory roles, and support plans, providing clients with implementation, customization, and continuous assistance. By maintaining strong relationships with its expansive ecosystem of partners, SAP ensures that its software continues to evolve and adapt to the ever-changing demands of today's digital economy, cementing its status as a crucial backbone for enterprises worldwide.
