Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

salesforce.com inc. (NYSE:CRM)

Common Stock Valuation Ratios (Price Multiples)

Beginner level


Current Valuation Ratios

salesforce.com inc., current price multiples

Microsoft Excel LibreOffice Calc
salesforce.com inc. Adobe Inc. Alphabet Inc. Autodesk Inc. Facebook Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. ServiceNow Inc. Software & Computer Services Technology
Selected Financial Data
Current share price (P) $192.53
No. shares of common stock outstanding 901,000,000
Growth rate (g) -0.33%
 
Earnings per share (EPS) $0.14
Next year expected EPS $0.14
Operating profit per share $0.33
Sales per share $18.98
Book value per share (BVPS) $37.61
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 1,376.74 71.99 29.11 245.41 35.98 11.27 51.13 39.86 16.94 126.04 34.56 29.54
Price to next year expected earnings 1,381.27 61.97 25.20 310.37 30.49 9.21 37.77 36.17 14.30 160.69 30.23 25.30
Price to operating profit (P/OP) 584.07 65.01 29.21 153.47 27.73 10.08 42.94 36.41 12.35 1,875.22 31.35 26.08
Price to sales (P/S) 10.15 19.02 6.18 16.08 9.41 1.38 11.74 12.43 4.39 22.83 8.01 6.77
Price to book value (P/BV) 5.12 20.18 4.96 6.58 5.10 21.24 15.29 14.22 37.12 8.56 8.88

Based on: 10-K (filing date: 2020-03-05).

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.com inc., historical price multiples

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Price to earnings (P/E) 1,204.70 107.70 731.11 324.94
Price to operating profit (P/OP) 511.08 223.46 395.31 908.77 411.51
Price to sales (P/S) 8.88 9.00 8.89 6.96 7.09 7.82
Price to book value (P/BV) 4.48 7.66 9.93 7.78 9.45 10.57

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

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.com inc.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
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.com inc.’s P/OP ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
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.com inc.’s P/S ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. salesforce.com inc.’s P/BV ratio decreased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

salesforce.com inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
No. shares of common stock outstanding1 895,000,000 771,000,000 731,500,000 707,500,000 670,900,000 650,600,000
Selected Financial Data (US$)
Net income (loss) (in millions) 126  1,110  127  180  (47) (263)
Earnings per share (EPS)2 0.14 1.44 0.17 0.25 -0.07 -0.40
Share price1, 3 169.60 155.06 127.41 82.50 70.49 64.56
Valuation Ratio
P/E ratio4 1,204.70 107.70 731.11 324.94
Benchmarks
P/E Ratio, Competitors5
Adobe Inc. 57.17 46.11 57.41 46.80 70.59
Alphabet Inc. 28.96 25.92 59.34 28.45 29.71
Autodesk Inc. 152.72 171.18
Facebook Inc. 32.31 21.51 35.20 37.05 84.21
International Business Machines Corp. 13.35 14.25 25.07 14.29 9.65
Intuit Inc. 48.17 46.88 37.26 29.60 63.89
Microsoft Corp. 26.86 50.00 26.25 26.08 30.63
Oracle Corp. 16.69 16.89 45.90 22.49 18.53 17.92
ServiceNow Inc. 106.89
P/E Ratio, Sector
Software & Computer Services 28.83 32.15 36.74 27.17 28.71
P/E Ratio, Industry
Technology 24.14 23.19 27.25 21.73 19.29

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 126,000,000 ÷ 895,000,000 = 0.14

3 Closing price as at the filing date of salesforce.com inc.’s Annual Report.

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 169.60 ÷ 0.14 = 1,204.70

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.com inc.’s P/E ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Operating Profit (P/OP)

salesforce.com inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
No. shares of common stock outstanding1 895,000,000 771,000,000 731,500,000 707,500,000 670,900,000 650,600,000
Selected Financial Data (US$)
Income (loss) from operations (in millions) 297  535  236  64  115  (146)
Operating profit per share2 0.33 0.69 0.32 0.09 0.17 -0.22
Share price1, 3 169.60 155.06 127.41 82.50 70.49 64.56
Valuation Ratio
P/OP ratio4 511.08 223.46 395.31 908.77 411.51
Benchmarks
P/OP Ratio, Competitors5
Adobe Inc. 51.63 42.06 44.86 36.62 49.21
Alphabet Inc. 29.05 30.27 28.74 23.37 24.29
Autodesk Inc. 95.51 9,893.24 116.01
Facebook Inc. 24.90 19.10 27.76 30.46 49.89
International Business Machines Corp. 11.94 9.41 12.22 12.94 8.11
Intuit Inc. 40.45 37.92 25.94 23.33 31.60
Microsoft Corp. 24.54 23.63 24.93 21.70 20.57
Oracle Corp. 12.17 13.83 12.83 16.52 13.09 12.84
ServiceNow Inc. 1,590.30
P/OP Ratio, Sector
Software & Computer Services 26.15 23.40 25.58 22.07 21.30
P/OP Ratio, Industry
Technology 21.31 17.83 19.81 17.10 14.73

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= 297,000,000 ÷ 895,000,000 = 0.33

3 Closing price as at the filing date of salesforce.com inc.’s Annual Report.

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 169.60 ÷ 0.33 = 511.08

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.com inc.’s P/OP ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Price to Sales (P/S)

salesforce.com inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
No. shares of common stock outstanding1 895,000,000 771,000,000 731,500,000 707,500,000 670,900,000 650,600,000
Selected Financial Data (US$)
Revenues (in millions) 17,098  13,282  10,480  8,392  6,667  5,374 
Sales per share2 19.10 17.23 14.33 11.86 9.94 8.26
Share price1, 3 169.60 155.06 127.41 82.50 70.49 64.56
Valuation Ratio
P/S ratio4 8.88 9.00 8.89 6.96 7.09 7.82
Benchmarks
P/S Ratio, Competitors5
Adobe Inc. 15.11 13.23 13.32 9.34 9.27
Alphabet Inc. 6.14 5.82 6.78 6.14 6.27
Autodesk Inc. 10.00 13.21 13.95 9.09 5.14 5.57
Facebook Inc. 8.45 8.52 13.80 13.70 17.32
International Business Machines Corp. 1.63 1.56 1.82 2.12 1.56
Intuit Inc. 11.05 9.52 6.99 6.17 5.56
Microsoft Corp. 8.38 7.51 6.19 5.13 3.99
Oracle Corp. 4.33 4.74 4.41 5.56 4.45 4.66
ServiceNow Inc. 19.36 16.63 14.55 10.50 8.69
P/S Ratio, Sector
Software & Computer Services 6.68 6.06 6.42 5.46 4.91
P/S Ratio, Industry
Technology 5.53 4.82 5.05 4.19 3.71

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 17,098,000,000 ÷ 895,000,000 = 19.10

3 Closing price as at the filing date of salesforce.com inc.’s Annual Report.

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 169.60 ÷ 19.10 = 8.88

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.com inc.’s P/S ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Book Value (P/BV)

salesforce.com inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
No. shares of common stock outstanding1 895,000,000 771,000,000 731,500,000 707,500,000 670,900,000 650,600,000
Selected Financial Data (US$)
Stockholders’ equity (in millions) 33,885  15,605  9,388  7,500  5,003  3,975 
Book value per share (BVPS)2 37.86 20.24 12.83 10.60 7.46 6.11
Share price1, 3 169.60 155.06 127.41 82.50 70.49 64.56
Valuation Ratio
P/BV ratio4 4.48 7.66 9.93 7.78 9.45 10.57
Benchmarks
P/BV Ratio, Competitors5
Adobe Inc. 16.03 12.76 11.50 7.37 6.35
Alphabet Inc. 4.94 4.49 4.93 3.99 3.91
Autodesk Inc. 25.18 7.94 6.31
Facebook Inc. 5.91 5.65 7.54 6.39 7.02
International Business Machines Corp. 6.04 7.40 8.20 9.30 8.92
Intuit Inc. 20.00 24.12 26.72 24.96 10.00
Microsoft Corp. 10.30 10.02 7.69 6.08 4.66
Oracle Corp. 14.01 8.59 3.84 3.90 3.49 3.66
ServiceNow Inc. 31.48 39.04 48.15 37.74 15.42
P/BV Ratio, Sector
Software & Computer Services 7.14 6.39 6.32 5.30 4.92
P/BV Ratio, Industry
Technology 7.25 6.30 5.53 4.51 4.34

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 33,885,000,000 ÷ 895,000,000 = 37.86

3 Closing price as at the filing date of salesforce.com inc.’s Annual Report.

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 169.60 ÷ 37.86 = 4.48

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’s required rate of return and its actual rate of return. salesforce.com inc.’s P/BV ratio decreased from 2018 to 2019 and from 2019 to 2020.