Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Salesforce Inc., current price multiples

Microsoft Excel
Salesforce Inc. Accenture PLC Adobe Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palo Alto Networks Inc. ServiceNow Inc. Synopsys Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $294.33
No. shares of common stock outstanding 970,000,000
Growth rate (g) 4.00%
 
Earnings per share (EPS) $4.26
Next year expected EPS $4.43
Operating profit per share $5.17
Sales per share $35.94
Book value per share (BVPS) $61.49
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 69.03 34.20 41.01 23.35 73.46 42.76 40.58 207.34 88.10 68.22 45.57 45.03
Price to next year expected earnings 66.38 28.63 31.42 26.49 62.10 33.26 27.87 274.75 77.03 59.25 37.22 35.77
Price-earnings-growth (PEG) 17.27 1.76 1.34 4.02 1.50 0.89 6.13 4.51 2.03 1.74
Price to operating profit (P/OP) 56.97 26.67 33.47 18.67 55.76 34.95 26.35 235.39 200.13 66.10 36.53 37.88
Price to sales (P/S) 8.19 3.67 11.47 2.83 12.19 14.60 6.91 13.23 17.00 14.36 10.24 9.96
Price to book value (P/BV) 4.79 9.15 13.48 7.77 10.14 15.00 321.57 52.14 19.99 13.65 13.38 14.38

Based on: 10-K (reporting date: 2024-01-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Salesforce Inc., historical price multiples

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Price to earnings (P/E) 71.24 879.57 135.68 48.20 1,204.70 107.70
Price to operating profit (P/OP) 58.80 177.62 357.52 431.39 511.08 223.46
Price to sales (P/S) 8.45 5.84 7.40 9.24 8.88 9.00
Price to book value (P/BV) 4.94 3.13 3.37 4.73 4.48 7.66

Based on: 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Salesforce Inc. P/E ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Salesforce Inc. P/OP ratio decreased from 2022 to 2023 and from 2023 to 2024.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Salesforce Inc. P/S ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Salesforce Inc. P/BV ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Price to Earnings (P/E)

Salesforce Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
No. shares of common stock outstanding1 970,000,000 1,000,000,000 990,000,000 921,000,000 895,000,000 771,000,000
Selected Financial Data (US$)
Net income (in millions) 4,136 208 1,444 4,072 126 1,110
Earnings per share (EPS)2 4.26 0.21 1.46 4.42 0.14 1.44
Share price1, 3 303.77 182.95 197.90 213.12 169.60 155.06
Valuation Ratio
P/E ratio4 71.24 879.57 135.68 48.20 1,204.70 107.70
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 27.81 22.93 36.58 28.32 24.58
Adobe Inc. 49.64 33.15 48.90 41.69 57.17
International Business Machines Corp. 22.50 71.56 19.40 19.30 13.35
Intuit Inc. 64.61 57.31 75.17 49.52 48.17
Microsoft Corp. 33.96 28.34 35.14 35.04 26.86
Oracle Corp. 38.96 26.85 15.84 16.69 16.89
Palo Alto Networks Inc. 170.35
ServiceNow Inc. 90.80 284.28 487.70 978.47 106.89
Synopsys Inc. 70.08 51.76 73.37 55.92 39.55
P/E Ratio, Sector
Software & Services 38.19 32.74 35.66 35.84 27.47
P/E Ratio, Industry
Information Technology 35.26 26.63 29.01 30.95 22.50

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 4,136,000,000 ÷ 970,000,000 = 4.26

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

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 303.77 ÷ 4.26 = 71.24

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Salesforce Inc. P/E ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Price to Operating Profit (P/OP)

Salesforce Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
No. shares of common stock outstanding1 970,000,000 1,000,000,000 990,000,000 921,000,000 895,000,000 771,000,000
Selected Financial Data (US$)
Income from operations (in millions) 5,011 1,030 548 455 297 535
Operating profit per share2 5.17 1.03 0.55 0.49 0.33 0.69
Share price1, 3 303.77 182.95 197.90 213.12 169.60 155.06
Valuation Ratio
P/OP ratio4 58.80 177.62 357.52 431.39 511.08 223.46
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 21.69 16.83 28.35 22.21 18.63
Adobe Inc. 40.52 25.85 40.64 51.75 51.63
International Business Machines Corp. 17.99 14.35 16.23 15.90 11.94
Intuit Inc. 49.04 46.05 62.00 41.56 40.45
Microsoft Corp. 27.76 24.72 30.79 29.30 24.54
Oracle Corp. 25.30 16.51 14.31 12.17 13.83
Palo Alto Networks Inc. 193.40
ServiceNow Inc. 206.26 260.26 436.46 583.07 1,590.30
Synopsys Inc. 67.90 43.85 75.64 59.90 40.48
P/OP Ratio, Sector
Software & Services 30.61 26.02 32.08 29.83 24.61
P/OP Ratio, Industry
Information Technology 29.66 22.50 25.75 26.48 19.63

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 5,011,000,000 ÷ 970,000,000 = 5.17

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

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 303.77 ÷ 5.17 = 58.80

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Salesforce Inc. P/OP ratio decreased from 2022 to 2023 and from 2023 to 2024.

Price to Sales (P/S)

Salesforce Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
No. shares of common stock outstanding1 970,000,000 1,000,000,000 990,000,000 921,000,000 895,000,000 771,000,000
Selected Financial Data (US$)
Revenues (in millions) 34,857 31,352 26,492 21,252 17,098 13,282
Sales per share2 35.94 31.35 26.76 23.07 19.10 17.23
Share price1, 3 303.77 182.95 197.90 213.12 169.60 155.06
Valuation Ratio
P/S ratio4 8.45 5.84 7.40 9.24 8.88 9.00
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 2.98 2.56 4.28 3.26 2.72
Adobe Inc. 13.88 8.95 14.94 17.04 15.11
International Business Machines Corp. 2.73 1.94 1.94 1.47 1.63
Intuit Inc. 10.72 9.30 16.09 11.78 11.05
Microsoft Corp. 11.60 10.40 12.81 10.85 8.38
Oracle Corp. 6.63 4.25 5.38 4.33 4.74
Palo Alto Networks Inc. 10.87 9.62 10.72 6.66 7.06
ServiceNow Inc. 17.52 12.75 19.02 25.66 19.36
Synopsys Inc. 14.75 10.03 13.22 10.08 6.27
P/S Ratio, Sector
Software & Services 8.58 7.28 9.27 7.47 5.99
P/S Ratio, Industry
Information Technology 7.80 6.40 7.40 6.61 4.99

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 34,857,000,000 ÷ 970,000,000 = 35.94

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

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 303.77 ÷ 35.94 = 8.45

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Salesforce Inc. P/S ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Price to Book Value (P/BV)

Salesforce Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
No. shares of common stock outstanding1 970,000,000 1,000,000,000 990,000,000 921,000,000 895,000,000 771,000,000
Selected Financial Data (US$)
Stockholders’ equity (in millions) 59,646 58,359 58,131 41,493 33,885 15,605
Book value per share (BVPS)2 61.49 58.36 58.72 45.05 37.86 20.24
Share price1, 3 303.77 182.95 197.90 213.12 169.60 155.06
Valuation Ratio
P/BV ratio4 4.94 3.13 3.37 4.73 4.48 7.66
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 7.44 7.13 11.06 8.51 8.15
Adobe Inc. 16.31 11.22 15.94 16.53 16.03
International Business Machines Corp. 7.49 5.34 5.90 5.24 6.04
Intuit Inc. 8.92 7.20 15.71 17.71 20.00
Microsoft Corp. 11.92 12.38 15.16 13.11 10.30
Oracle Corp. 308.71 41.57 14.01 8.59
Palo Alto Networks Inc. 42.84 251.98 71.88 20.61 12.91
ServiceNow Inc. 20.60 18.36 30.36 40.91 31.48
Synopsys Inc. 14.02 9.24 10.50 7.57 5.16
P/BV Ratio, Sector
Software & Services 11.21 10.49 13.38 11.40 9.93
P/BV Ratio, Industry
Information Technology 11.26 10.30 12.33 10.90 8.25

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 59,646,000,000 ÷ 970,000,000 = 61.49

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

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 303.77 ÷ 61.49 = 4.94

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Salesforce Inc. P/BV ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.