Is SAP or Xero more undervalued?

As of Sep 5, 2026, SAP is at -9% to fair value and Xero at -69%. SAP is the less overvalued of the two. Model-based estimate, not financial advice.

Which has higher quality, SAP or Xero?

SAP has a quality score of 81/100 and Xero 42/100. SAP leads on quality.

STOCK COMPARISON

SAP vs Xero: Fair Value & Quality

Both stocks run through our valuation models. Here is how SAP (SAP) and Xero (XRO) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees SAP as the less overvalued of the two: SAP trades at €186 versus a fair value of €170 (-9%), while Xero trades at A$79.37 versus A$24.69 (-69%).

SAP

SAP.XETRA · EUR · Information Technology

-9%

upside to fair value

fairly valued

Price€186

Fair Value€170

Quality81/100

Xero

XRO.AU · AUD · Information Technology

-69%

upside to fair value

overvalued

PriceA$79.37

Fair ValueA$24.69

Quality42/100

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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

SAPXero

Valuation

22.1×P/E (TTM)—

5.01×P/S (TTM)3.34×

4.18×P/B1.69×

15.8×EV/EBITDA22.6×

1.37×PEG—

−8.7%Fair value upside−68.9%

1.3%Dividend yield0.1%

€2.50Dividend per share—

Profitability

30%Operating margin11%

1.16×EBIT margin trend (5Y)1.82×

16%Return on equity4%

9%Return on assets3%

Growth

6%Revenue growth (YoY)41%

6.0%Avg. growth/yr (3Y)28.3%

6.1%Avg. growth/yr (5Y)28.4%

+8.8%Value creation/yr+67.7%

Balance & size

7.5×Interest coverage (EBIT/interest)2.1×

0.09×Debt / equity0.11×

$187BMarket cap$9B

healthyGrowth qualityhealthy

SAP leads: 7 to 6 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

SAPof which business quality 78 · market factors 45 Xeroof which business quality 48 · market factors 30

ProfitabilityMargins and returns on capital today

Quality GrowthAre margins and returns improving?

CashflowEarnings quality: real cash, not paper profit

100

Fin. StrengthBalance sheet, leverage, solvency risk

InvestmentDisciplined investing over empire-building

Low VolatilityCalm price path (market factor)

MomentumPrice trend over the last 3–12 months (market factor)

52W MomentumDistance to the 52-week high (market factor)

Net IssuanceBuybacks instead of dilution

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model family	SAPPrice €186	XeroPrice A$79.37
DCF Models	-20%below the price€149	+45%above the priceA$115
Earnings-Based	-68%below the price€60.32	-54%below the priceA$36.32
Dividend Discount	-78%below the price€41.03	-99%below the priceA$1.11
Multiples	-21%below the price€147	-62%below the priceA$30.20
Asset-Based	-86%below the price€25.68	-74%below the priceA$21.03
Growth DCF	-30%below the price€131	+62%above the priceA$129
Economic Profit	-62%below the price€69.81	-77%below the priceA$18.63
Growth Earnings	-16%below the price€156	-34%below the priceA$52.44
Minimum	-86%below the price€25.68	-99%below the priceA$1.11
Maximum	-16%below the price€156	+62%above the priceA$129
Median	-46%below the price€100	-58%below the priceA$33.26
Geometric mean	-56%below the price€81.68	-65%below the priceA$27.92

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

SAP: 24 of 26 models see the stock below the current price.

Xero: 17 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

SAP

Bear €104Fair Value €170Bull €220

€186 = current price (white tick)

Xero

Bear A$19.79Fair Value A$24.69Bull A$30.87

A$79.37 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

SAP · Information Technology

Quality score81 · Top 25%

Fair value upside-9% · above median

Xero · Information Technology

Quality score42 · bottom 25%

Fair value upside-69% · bottom 25%

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees SAP as the less overvalued of the two: SAP trades at €186 versus a fair value of €170 (-9%), while Xero trades at A$79.37 versus A$24.69 (-69%).

SAP has the higher quality score (81/100).

See the full analysis →

SAP · Xero

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.