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Salesforce (WBO:CRM) Cyclically Adjusted PB Ratio : 6.43 (As of May. 22, 2025)


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What is Salesforce Cyclically Adjusted PB Ratio?

As of today (2025-05-22), Salesforce's current share price is €252.75. Salesforce's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2025 was €39.31. Salesforce's Cyclically Adjusted PB Ratio for today is 6.43.

The historical rank and industry rank for Salesforce's Cyclically Adjusted PB Ratio or its related term are showing as below:

WBO:CRM' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.95   Med: 17.56   Max: 28.63
Current: 7.04

During the past years, Salesforce's highest Cyclically Adjusted PB Ratio was 28.63. The lowest was 4.95. And the median was 17.56.

WBO:CRM's Cyclically Adjusted PB Ratio is ranked worse than
80.46% of 1402 companies
in the Software industry
Industry Median: 2.765 vs WBO:CRM: 7.04

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Salesforce's adjusted book value per share data for the three months ended in Jan. 2025 was €61.427. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €39.31 for the trailing ten years ended in Jan. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Salesforce Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Salesforce's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Salesforce Cyclically Adjusted PB Ratio Chart

Salesforce Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.93 11.35 6.13 8.35 8.52

Salesforce Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.35 7.56 6.99 7.57 8.52

Competitive Comparison of Salesforce's Cyclically Adjusted PB Ratio

For the Software - Application subindustry, Salesforce's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Salesforce's Cyclically Adjusted PB Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Salesforce's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Salesforce's Cyclically Adjusted PB Ratio falls into.


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Salesforce Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Salesforce's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=252.75/39.31
=6.43

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Salesforce's Cyclically Adjusted Book per Share for the quarter that ended in Jan. 2025 is calculated as:

For example, Salesforce's adjusted Book Value per Share data for the three months ended in Jan. 2025 was:

Adj_Book=Book Value per Share/CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=61.427/134.0288*134.0288
=61.427

Current CPI (Jan. 2025) = 134.0288.

Salesforce Quarterly Data

Book Value per Share CPI Adj_Book
201504 5.965 99.824 8.009
201507 6.247 100.691 8.315
201510 6.374 100.346 8.514
201601 6.868 99.957 9.209
201604 7.262 100.947 9.642
201607 8.102 101.524 10.696
201610 8.870 101.988 11.657
201701 9.965 102.456 13.036
201704 10.394 103.167 13.503
201707 10.216 103.278 13.258
201710 10.415 104.070 13.413
201801 11.658 104.578 14.941
201804 12.282 105.708 15.573
201807 15.303 106.324 19.290
201810 16.710 106.695 20.991
201901 17.753 106.200 22.405
201904 18.886 107.818 23.477
201907 19.631 108.250 24.306
201910 33.955 108.577 41.914
202001 34.189 108.841 42.101
202004 35.372 108.173 43.827
202007 36.831 109.318 45.157
202010 37.487 109.861 45.734
202101 37.068 110.364 45.016
202104 38.471 112.673 45.763
202107 48.027 115.183 55.885
202110 49.980 116.696 57.404
202201 51.959 118.619 58.709
202204 54.848 121.978 60.267
202207 59.135 125.002 63.405
202210 60.788 125.734 64.798
202301 55.206 126.223 58.620
202304 53.592 127.992 56.120
202307 53.852 128.974 55.962
202310 56.771 129.810 58.616
202401 56.390 130.124 58.082
202404 57.286 132.289 58.039
202407 55.467 132.708 56.019
202410 56.199 133.182 56.556
202501 61.427 134.029 61.427

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Salesforce  (WBO:CRM) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Salesforce Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Salesforce's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Salesforce Business Description

Industry
Address
415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105
Salesforce provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.