Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

$24.99

Price to Sales (P/S)
since 2005

Microsoft Excel

Calculation

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

Microsoft Excel

Based on: 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.

Share Price Trend
The share price exhibits significant volatility over the period, starting very low at 3.61 USD in 2005, followed by a general upward trend with notable spikes and corrections. There is marked growth between 2011 and 2013, where the share price escalates sharply from 30.53 USD to a peak of 185.85 USD in 2013, before dropping to around 63.68 USD in 2014. After this decline, the price resumes an upward trajectory, reaching a maximum near 303.77 USD in 2024, with a minor dip to 291.97 USD in 2025. Overall, the share price has increased substantially over the two decades despite periods of correction.
Sales Per Share Evolution
Sales per share show a steady and robust growth pattern throughout the period analyzed. Starting at 0.42 USD in 2005, the figure demonstrates consistent year-on-year increases, reaching 20.83 USD in 2013. Despite an aberration coinciding with the share price drop, sales per share quickly recover and continue their upward trend, climbing to 39.43 USD by 2025. This steady increase indicates strong and sustained sales growth per share over time.
Price-to-Sales (P/S) Ratio Analysis
The P/S ratio fluctuates noticeably but remains generally within a moderate range, beginning at 8.64 in 2005. The ratio peaks at 13.93 in 2006 and then oscillates downward with some volatility. A sharp decline to 3.52 is noted in 2009, which coincides with the share price fall that year, reflecting potential market undervaluation relative to sales. Post-2009, the ratio stabilizes mostly between 6 and 9 with occasional peaks near 9 and troughs near 5.84, indicating that the market valuation relative to sales has varied but not drastically deviated from its historical range. The P/S ratio settles around 7.4 by 2025, suggesting a more stable valuation multiple in recent years.
Overall Insights
The data indicate a company with strong sales growth, as evidenced by the persistent increase in sales per share. The share price growth, although volatile, generally mirrors the improvement in underlying sales, albeit with periods of price corrections that suggest market sentiment shifts or external factors. The P/S ratio's fluctuations reflect adjustments in market valuation relative to sales, with a notable undervaluation during the 2008-2009 financial crisis period and stabilization thereafter. The gap between sales growth and share price performance implies that while sales fundamentals are robust, market perceptions and market cycles have had considerable impact on share price valuation.

Comparison to Competitors

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

Microsoft Excel

Based on: 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)