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Salesforce (NYSE:CRM) PE Ratio

: 516.29 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-12-03), Salesforce's share price is $144.56. Salesforce's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2022 was $0.28. Therefore, Salesforce's PE Ratio for today is 516.29.


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

CRM' s PE Ratio Range Over the Past 10 Years
Min: 45.29   Med: 158.59   Max: 949.75
Current: 516.29


During the past 13 years, the highest PE Ratio of Salesforce was 949.75. The lowest was 45.29. And the median was 158.59.


CRM's PE Ratio is ranked worse than
98.05% of 1439 companies
in the Software industry
Industry Median: 25.81 vs CRM: 516.29

Salesforce's Earnings per Share (Diluted) for the three months ended in Oct. 2022 was $0.21. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2022 was $0.28.

As of today (2022-12-03), Salesforce's share price is $144.56. Salesforce's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2022 was $0.28. Therefore, Salesforce's PE Ratio without NRI for today is 516.29.

During the past 13 years, Salesforce's highest PE Ratio without NRI was 949.75. The lowest was 45.29. And the median was 158.59.

Salesforce's EPS without NRI for the three months ended in Oct. 2022 was $0.21. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2022 was $0.28.

During the past 12 months, Salesforce's average EPS without NRI Growth Rate was -84.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was 1.20% per year. During the past 5 years, the average EPS without NRI Growth Rate was 33.70% per year.

During the past 13 years, Salesforce's highest 3-Year average EPS without NRI Growth Rate was 107.50% per year. The lowest was -175.90% per year. And the median was 13.60% per year.

Salesforce's EPS (Basic) for the three months ended in Oct. 2022 was $0.21. Its EPS (Basic) for the trailing twelve months (TTM) ended in Oct. 2022 was $0.28.


Salesforce (NYSE:CRM) PE Ratio Historical Data

The historical data trend for Salesforce's PE 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 Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 232.47 106.27 1,215.40 51.50 157.18

Salesforce Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only 165.57 157.18 170.82 340.78 580.68

Salesforce (NYSE:CRM) PE Ratio Competitive Comparison

For the Software - Application subindustry, Salesforce's PE Ratio, along with its competitors' market caps and 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 (NYSE:CRM) PE Ratio Distribution

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

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



Salesforce PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Salesforce's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=144.56/0.280
=516.29

Salesforce's Share Price of today is $144.56.
Salesforce's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.28.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Salesforce  (NYSE:CRM) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

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

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Salesforce PE Ratio Related Terms

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


Salesforce (NYSE:CRM) Business Description

Salesforce logo
Address
415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105
Salesforce.com provides enterprise cloud computing solutions, including Sales Cloud, the company's main customer relationship management software-as-a-service product. Salesforce.com 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.
Executives
Munoz Oscar director
Alber Laura director
Wojcicki Susan director 1600 AMPHITHEATER PARKWAY MOUNTAIN VIEW CA 94043
Conway Craig director SALESFORCE TOWER 415 MISSION STREET, 3RD FLOOR SAN FRANCISCO CA 94105
Kroes Neelie director VAN BRONCKHORSTLAAN 2242 PZ WASSENAAR NETHERLANDS P8 99999
Robertson Sanford director ONE LETTERMAN DRIVE BUILDING C SUITE 410 SAN FRANCISCO CA 94129
Hassenfeld Alan G director C/O HASSENFELD FAMILY INITIATIVES LLC 101 DYER STREET, SUITE 401 PROVIDENCE RI 02903
Washington Robin L director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Hyder Brent officer: President/Chief People Officer 415 MISSION STREET, 3RD FLOOR SAN FRANCISCO CA 94105
Webb Maynard G Jr director 16541 CYPRESS WAY LOS GATOS CA 95030
Reddy Sundeep G. officer: EVP & Chief Accounting Officer 6555 NORTH STATE HWY 161 IRVING TX 75039
Patterson Gavin officer: Pres. & Chief Revenue Officer SALESFORCE TOWER, 415 MISSION STREET 3RD FLOOR SAN FRANCISCO CA 94105
Harris Parker director, officer: Co-Founder and CTO THE LANDMARK @ ONE MARKET SUITE 300 SAN FRANCISCO CA 94105
Roos John Victor director 1 MARKET STREET, SUITE 300 SAN FRANCISCO CA 94105
Taylor Bret Steven officer: Pres. & Chief Product Officer 415 MISSION STREET 3RD FLOOR SAN FRANCISCO CA 94105

Salesforce (NYSE:CRM) Headlines

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