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 20.06 is considered Undervalued compared with the five-year average of 34.60. The fair price of Salesforce Inc (CRM) is between 293.19 to 622.81 according to relative valuation methord. Compared to the current price of 266.86 USD , Salesforce Inc is Undervalued By 8.98%.
Relative Value
Fair Zone
293.19-622.81
Current Price：266.86
8.98%
Undervalued
20.06
PE
1Y
3Y
5Y
13.78
EV/EBITDA
Salesforce Inc. (CRM) has a current EV/EBITDA of 13.78. The 5-year average EV/EBITDA is 20.17. The thresholds are as follows: Strongly Undervalued below 9.27, Undervalued between 9.27 and 14.72, Fairly Valued between 25.62 and 14.72, Overvalued between 25.62 and 31.07, and Strongly Overvalued above 31.07. The current Forward EV/EBITDA of 13.78 falls within the Undervalued range.
15.34
EV/EBIT
Salesforce Inc. (CRM) has a current EV/EBIT of 15.34. The 5-year average EV/EBIT is 26.02. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 15.04, Fairly Valued between 37.01 and 15.04, Overvalued between 37.01 and 48.00, and Strongly Overvalued above 48.00. The current Forward EV/EBIT of 15.34 falls within the Historic Trend Line -Fairly Valued range.
5.27
PS
Salesforce Inc. (CRM) has a current PS of 5.27. The 5-year average PS is 6.51. The thresholds are as follows: Strongly Undervalued below 3.80, Undervalued between 3.80 and 5.16, Fairly Valued between 7.87 and 5.16, Overvalued between 7.87 and 9.22, and Strongly Overvalued above 9.22. The current Forward PS of 5.27 falls within the Historic Trend Line -Fairly Valued range.
15.01
P/OCF
Salesforce Inc. (CRM) has a current P/OCF of 15.01. The 5-year average P/OCF is 24.46. The thresholds are as follows: Strongly Undervalued below 6.94, Undervalued between 6.94 and 15.70, Fairly Valued between 33.22 and 15.70, Overvalued between 33.22 and 41.98, and Strongly Overvalued above 41.98. The current Forward P/OCF of 15.01 falls within the Undervalued range.
15.97
P/FCF
Salesforce Inc. (CRM) has a current P/FCF of 15.97. The 5-year average P/FCF is 27.27. The thresholds are as follows: Strongly Undervalued below 5.96, Undervalued between 5.96 and 16.62, Fairly Valued between 37.92 and 16.62, Overvalued between 37.92 and 48.58, and Strongly Overvalued above 48.58. The current Forward P/FCF of 15.97 falls within the Undervalued range.
Salesforce Inc (CRM) has a current Price-to-Book (P/B) ratio of 3.98. Compared to its 3-year average P/B ratio of 4.12 , the current P/B ratio is approximately -3.28% higher. Relative to its 5-year average P/B ratio of 4.04, the current P/B ratio is about -1.52% higher. Salesforce Inc (CRM) has a Forward Free Cash Flow (FCF) yield of approximately 5.43%. Compared to its 3-year average FCF yield of 4.17%, the current FCF yield is approximately 30.22% lower. Relative to its 5-year average FCF yield of 3.58% , the current FCF yield is about 51.52% lower.
3.98
P/B
Median3y
4.12
Median5y
4.04
5.43
FCF Yield
Median3y
4.17
Median5y
3.58
Competitors Valuation Multiple
The average P/S ratio for CRM's competitors is 10.72, providing a benchmark for relative valuation. Salesforce Inc Corp (CRM) exhibits a P/S ratio of 5.27, which is -50.79% above the industry average. Given its robust revenue growth of 8.63%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CRM decreased by 23.06% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 16.17 to 20.33.
The secondary factor is the Revenue Growth, contributed 8.63%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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Frequently Asked Questions
Is Salesforce Inc (CRM) currently overvalued or undervalued?
Salesforce Inc (CRM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.06 is considered Undervalued compared with the five-year average of 34.60. The fair price of Salesforce Inc (CRM) is between 293.19 to 622.81 according to relative valuation methord. Compared to the current price of 266.86 USD , Salesforce Inc is Undervalued By 8.98% .
What is Salesforce Inc (CRM) fair value?
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. The fair price of Salesforce Inc (CRM) is between 293.19 to 622.81 according to relative valuation methord.
How does CRM's valuation metrics compare to the industry average?
The average P/S ratio for CRM's competitors is 10.72, providing a benchmark for relative valuation. Salesforce Inc Corp (CRM) exhibits a P/S ratio of 5.27, which is -50.79% above the industry average. Given its robust revenue growth of 8.63%, this premium appears unsustainable.
What is the current P/B ratio for Salesforce Inc (CRM) as of Jan 07 2026?
As of Jan 07 2026, Salesforce Inc (CRM) has a P/B ratio of 3.98. This indicates that the market values CRM at 3.98 times its book value.
What is the current FCF Yield for Salesforce Inc (CRM) as of Jan 07 2026?
As of Jan 07 2026, Salesforce Inc (CRM) has a FCF Yield of 5.43%. This means that for every dollar of Salesforce Inc’s market capitalization, the company generates 5.43 cents in free cash flow.
What is the current Forward P/E ratio for Salesforce Inc (CRM) as of Jan 07 2026?
As of Jan 07 2026, Salesforce Inc (CRM) has a Forward P/E ratio of 20.06. This means the market is willing to pay $20.06 for every dollar of Salesforce Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Salesforce Inc (CRM) as of Jan 07 2026?
As of Jan 07 2026, Salesforce Inc (CRM) has a Forward P/S ratio of 5.27. This means the market is valuing CRM at $5.27 for every dollar of expected revenue over the next 12 months.