CRM Relative Valuation
CRM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CRM is overvalued; if below, it's undervalued.
Historical Valuation
Salesforce Inc (CRM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 19.94 is considered Undervalued compared with the five-year average of 35.40. The fair price of Salesforce Inc (CRM) is between 259.90 to 568.63 according to relative valuation methord. Compared to the current price of 241.15 USD , Salesforce Inc is Undervalued By 7.21%.
Relative Value
Fair Zone
259.90-568.63
Current Price：241.15
7.21%
Undervalued
20.67
PE
1Y
3Y
5Y
Trailing
Forward
12.88
EV/EBITDA
Salesforce Inc. (CRM) has a current EV/EBITDA of 12.88. The 5-year average EV/EBITDA is 20.42. The thresholds are as follows: Strongly Undervalued below 9.38, Undervalued between 9.38 and 14.90, Fairly Valued between 25.95 and 14.90, Overvalued between 25.95 and 31.47, and Strongly Overvalued above 31.47. The current Forward EV/EBITDA of 12.88 falls within the Undervalued range.
15.11
EV/EBIT
Salesforce Inc. (CRM) has a current EV/EBIT of 15.11. The 5-year average EV/EBIT is 26.58. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 15.31, Fairly Valued between 37.84 and 15.31, Overvalued between 37.84 and 49.11, and Strongly Overvalued above 49.11. The current Forward EV/EBIT of 15.11 falls within the Undervalued range.
5.29
PS
Salesforce Inc. (CRM) has a current PS of 5.29. The 5-year average PS is 6.57. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 5.20, Fairly Valued between 7.93 and 5.20, Overvalued between 7.93 and 9.30, and Strongly Overvalued above 9.30. The current Forward PS of 5.29 falls within the Historic Trend Line -Fairly Valued range.
14.63
P/OCF
Salesforce Inc. (CRM) has a current P/OCF of 14.63. The 5-year average P/OCF is 24.77. The thresholds are as follows: Strongly Undervalued below 7.26, Undervalued between 7.26 and 16.01, Fairly Valued between 33.52 and 16.01, Overvalued between 33.52 and 42.27, and Strongly Overvalued above 42.27. The current Forward P/OCF of 14.63 falls within the Undervalued range.
15.67
P/FCF
Salesforce Inc. (CRM) has a current P/FCF of 15.67. The 5-year average P/FCF is 27.70. The thresholds are as follows: Strongly Undervalued below 6.28, Undervalued between 6.28 and 16.99, Fairly Valued between 38.40 and 16.99, Overvalued between 38.40 and 49.11, and Strongly Overvalued above 49.11. The current Forward P/FCF of 15.67 falls within the Undervalued range.
Salesforce Inc (CRM) has a current Price-to-Book (P/B) ratio of 3.72. Compared to its 3-year average P/B ratio of 4.06 , the current P/B ratio is approximately -8.46% higher. Relative to its 5-year average P/B ratio of 4.06, the current P/B ratio is about -8.48% higher. Salesforce Inc (CRM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.14%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.52% , the current FCF yield is about -100.00% lower.
3.85
P/B
Median3y
4.06
Median5y
4.06
5.50
FCF Yield
Median3y
4.14
Median5y
3.52
Competitors Valuation Multiple
The average P/S ratio for CRM's competitors is 6.06, providing a benchmark for relative valuation. Salesforce Inc Corp (CRM) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -94.36%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CRM decreased by 25.98% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.17 to 391.37.
The secondary factor is the Revenue Growth, contributed -94.36%to the performance.
Overall, the performance of CRM in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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