Salesforce (NEOE:CRM) PEG Ratio : 1.09 (As of Dec. 12, 2024)

View and export this data going back to 2021. Start your Free Trial

What is Salesforce PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Salesforce's PE Ratio without NRI is 36.73. Salesforce's 5-Year EBITDA growth rate is 33.70%. Therefore, Salesforce's PEG Ratio for today is 1.09.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

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

NEOE:CRM' s PEG Ratio Range Over the Past 10 Years
Min: 0.75 Med: 1.46 Max: 31.02
Current: 1.09

During the past 13 years, Salesforce's highest PEG Ratio was 31.02. The lowest was 0.75. And the median was 1.46.

NEOE:CRM's PEG Ratio is ranked better than
65.6% of 814 companies
in the Software industry
Industry Median: 1.67 vs NEOE:CRM: 1.09

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.

Salesforce PEG Ratio Historical Data

The historical data trend for Salesforce's PEG 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 PEG Ratio Chart

Salesforce Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

PEG Ratio

Get a 7-Day Free Trial

1.59

1.50

1.74

1.51

1.13

Salesforce Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
PEG Ratio	Get a 7-Day Free Trial															0.96	1.13	0.95	0.82	0.86

Competitive Comparison of Salesforce's PEG Ratio

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

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

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

Salesforce PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Salesforce's PEG Ratio for today is calculated as

PEG Ratio	=	PE Ratio without NRI	/	5-Year EBITDA Growth Rate*
	=	36.727272727273	/	33.70
	=	1.09

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

Salesforce (NEOE:CRM) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.

Salesforce PEG Ratio Related Terms

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

Salesforce Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Salesforce Inc (NEOE:CRM) » Definitions » PEG Ratio

Comparable Companies

Traded in Other Exchanges

CRM:USA CRM:Peru CRM:Mexico CRM_KZ:Kazakhstan 1CRM:Italy FOOd:UK FOO0:Germany FOO:Germany FOO:Germany FOO:Germany SSFO34:Brazil CRM:Austria CRM:Argentina

Address

415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105

Website

https://www.salesforce.com

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.