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Salesforce (WBO:CRM) E10 : €2.04 (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 €1.690. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €2.04 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 (2025-03-18), Salesforce's current stock price is €255.50. Salesforce's E10 for the quarter that ended in Jan. 2025 was €2.04. Salesforce's Shiller PE Ratio of today is 125.25.

During the past 13 years, the highest Shiller PE Ratio of Salesforce was 5301.00. The lowest was 134.33. 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 0.44 0.62 0.77 1.25 2.04

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 1.25 1.46 1.58 1.74 2.04

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)
=1.69/134.0288*134.0288
=1.690

Current CPI (Jan. 2025) = 134.0288.

Salesforce Quarterly Data

per share eps CPI Adj_EPS
201504 0.009 99.824 0.012
201507 -0.001 100.691 -0.001
201510 -0.036 100.346 -0.048
201601 -0.037 99.957 -0.050
201604 0.053 100.947 0.070
201607 0.299 101.524 0.395
201610 -0.045 101.988 -0.059
201701 -0.066 102.456 -0.086
201704 0.001 103.167 0.001
201707 0.052 103.278 0.067
201710 0.119 104.070 0.153
201801 0.074 104.578 0.095
201804 0.375 105.708 0.475
201807 0.334 106.324 0.421
201810 0.113 106.695 0.142
201901 0.403 106.200 0.509
201904 0.436 107.818 0.542
201907 0.098 108.250 0.121
201910 -0.108 108.577 -0.133
202001 -0.252 108.841 -0.310
202004 0.101 108.173 0.125
202007 2.479 109.318 3.039
202010 0.978 109.861 1.193
202101 0.230 110.364 0.279
202104 0.418 112.673 0.497
202107 0.474 115.183 0.552
202110 0.405 116.696 0.465
202201 -0.027 118.619 -0.031
202204 0.028 121.978 0.031
202207 0.069 125.002 0.074
202210 0.213 125.734 0.227
202301 -0.093 126.223 -0.099
202304 0.182 127.992 0.191
202307 1.157 128.974 1.202
202310 1.184 129.810 1.222
202401 1.349 130.124 1.389
202404 1.454 132.289 1.473
202407 1.355 132.708 1.368
202410 1.450 133.182 1.459
202501 1.690 134.029 1.690

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


Salesforce  (WBO: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
=255.50/2.04
=125.25

* 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 134.33. 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.