Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

Calculation

Salesforce Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-01-31), 10-K (reporting date: 2012-01-31), 10-K (reporting date: 2011-01-31), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-01-31), 10-K (reporting date: 2007-01-31), 10-K (reporting date: 2006-01-31), 10-K (reporting date: 2005-01-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Salesforce Inc. Annual Report.


The price-to-earnings (P/E) ratio exhibits significant fluctuations over the observed period. Initially, the ratio is exceptionally high, indicating a substantial premium placed on the company’s share price relative to its earnings. This is particularly evident in the early years, with values exceeding 10,000 in 2007.

Early Volatility (2005-2009)
From 2005 to 2009, the P/E ratio demonstrates considerable volatility. It begins at 207.38, decreases to 87.39, and then spikes dramatically in 2007 before falling again. This period is characterized by inconsistent earnings, including negative earnings in 2008 and 2012, which contribute to the erratic P/E values. The high values suggest investor expectations were not immediately reflected in earnings.

Following 2009, the P/E ratio generally stabilizes, though it remains subject to considerable variation. A period of relatively lower P/E ratios is observed between 2010 and 2013, coinciding with periods of low or negative earnings per share.

Mid-Period Fluctuations (2010-2016)
Between 2010 and 2016, the P/E ratio fluctuates, peaking at 324.94 in 2016. This period shows a gradual improvement in earnings, but the P/E ratio remains sensitive to even small changes in earnings. The presence of negative earnings in 2012 results in a missing P/E value, as the calculation is undefined.

Subsequent to 2016, the P/E ratio experiences another period of substantial change. A significant peak is observed in 2018, followed by a sharp decline in 2019, and then a substantial increase in 2020. The latter half of the period shows a more moderate range of values, though still exhibiting considerable movement.

Recent Trends (2017-2026)
From 2017 onwards, the P/E ratio demonstrates a pattern of high volatility. The ratio reaches a peak of 731.11 in 2018, then falls to 107.70 in 2019, and spikes again to 1,204.70 in 2020. More recently, the ratio has decreased to 23.88 in 2026, suggesting a potential shift in market valuation relative to earnings. The substantial fluctuations indicate a dynamic market perception of the company’s future earnings potential.

Overall, the P/E ratio demonstrates a history of significant volatility, influenced heavily by changes in earnings per share. The ratio’s movements suggest periods of both high investor optimism and periods of uncertainty or concern regarding the company’s profitability.


Comparison to Competitors

Salesforce Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-01-31), 10-K (reporting date: 2012-01-31), 10-K (reporting date: 2011-01-31), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-01-31), 10-K (reporting date: 2007-01-31), 10-K (reporting date: 2006-01-31), 10-K (reporting date: 2005-01-31).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)