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Salesforce (MEX:CRM) E10 : MXN43.47 (As of Jan. 2025)


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What is Salesforce E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Salesforce's adjusted earnings per share data for the three months ended in Jan. 2025 was MXN36.101. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is MXN43.47 for the trailing ten years ended in Jan. 2025.

During the past 12 months, Salesforce's average E10 Growth Rate was 55.20% per year. During the past 3 years, the average E10 Growth Rate was 43.10% per year. During the past 5 years, the average E10 Growth Rate was 70.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Salesforce was 110.50% per year. The lowest was -20.50% per year. And the median was 39.65% per year.

As of today (2025-03-20), Salesforce's current stock price is MXN5607.77. Salesforce's E10 for the quarter that ended in Jan. 2025 was MXN43.47. Salesforce's Shiller PE Ratio of today is 129.00.

During the past 13 years, the highest Shiller PE Ratio of Salesforce was 5301.00. The lowest was 134.26. And the median was 375.28.


Salesforce E10 Historical Data

The historical data trend for Salesforce's E10 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 E10 Chart

Salesforce Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.89 14.64 15.68 23.22 43.47

Salesforce Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
E10 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 23.22 26.35 31.85 37.72 43.47

Competitive Comparison of Salesforce's E10

For the Software - Application subindustry, Salesforce's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Salesforce's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Salesforce's Shiller PE Ratio falls into.



Salesforce E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

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

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=36.101/134.0288*134.0288
=36.101

Current CPI (Jan. 2025) = 134.0288.

Salesforce Quarterly Data

per share eps CPI Adj_EPS
201504 0.154 99.824 0.207
201507 -0.021 100.691 -0.028
201510 -0.661 100.346 -0.883
201601 -0.728 99.957 -0.976
201604 1.031 100.947 1.369
201607 6.191 101.524 8.173
201610 -0.939 101.988 -1.234
201701 -1.458 102.456 -1.907
201704 0.026 103.167 0.034
201707 1.072 103.278 1.391
201710 2.678 104.070 3.449
201801 1.676 104.578 2.148
201804 8.635 105.708 10.948
201807 7.253 106.324 9.143
201810 2.633 106.695 3.308
201901 8.764 106.200 11.061
201904 9.307 107.818 11.570
201907 2.089 108.250 2.586
201910 -2.301 108.577 -2.840
202001 -5.289 108.841 -6.513
202004 2.638 108.173 3.269
202007 63.344 109.318 77.663
202010 24.467 109.861 29.850
202101 5.671 110.364 6.887
202104 10.085 112.673 11.997
202107 11.114 115.183 12.932
202110 9.659 116.696 11.094
202201 -0.619 118.619 -0.699
202204 0.611 121.978 0.671
202207 1.425 125.002 1.528
202210 4.168 125.734 4.443
202301 -1.880 126.223 -1.996
202304 3.598 127.992 3.768
202307 21.399 128.974 22.238
202310 22.566 129.810 23.299
202401 25.249 130.124 26.007
202404 26.620 132.289 26.970
202407 27.338 132.708 27.610
202410 31.650 133.182 31.851
202501 36.101 134.029 36.101

Add all the adjusted EPS together and divide 10 will get our e10.


Salesforce  (MEX:CRM) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Salesforce's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=5607.77/43.47
=129.00

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Salesforce was 5301.00. The lowest was 134.26. And the median was 375.28.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Salesforce E10 Related Terms

Thank you for viewing the detailed overview of Salesforce's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Salesforce Business Description

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.