Highly Regarded

Is Salesforce Inc. (CRM) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

63% Discount TTM fundamentals · sector averages from covered peers

CRM trades at 35.8× TTM earnings — a 63% discount to its Technology sector average of 96.1× in our coverage.

The Numbers

P/E (TTM)

35.8×

Sector avg: 96.1×

P/S (TTM)

5.9×

Sector avg: 22.8×

Market Cap

$231.17B

EPS (TTM): $6.89

Revenue (TTM)

$39.50B

Net income: $6.66B

Technology Peer Comparison

How CRM's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
CRM This page $246.71 35.8×
NVDA $217.23 53.8×
AAPL $341.95 43.3×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
AMD $562.16 212.1×
PLTR $200.48 466.2×
INTC $95.36 —
CSCO $109.85 42.4×
ORCL $134.50 31.1×
TXN $279.15 51.2×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Discount Justified?

October 11, 2026

Salesforce Inc.'s P/E of 33.2x trades at a significant discount compared to the technology sector average of 94.8x. This valuation reflects investor perception of a shift from hyper-growth to a more mature compounding phase. The company delivered solid second-quarter fiscal 2027 results, with revenue up 11% year-over-year and subscription and support revenue increasing by 12%. GAAP diluted EPS saw a substantial 119% year-over-year increase, alongside strong operating and free cash flow growth. Salesforce is experiencing considerable demand for its AI and data products, with annual recurring revenue (ARR) nearing $4 billion, and management anticipates a re-acceleration of growth metrics in the second half of fiscal 2027. However, a sharp increase in noncurrent debt, primarily for share repurchases, may be a factor influencing investor sentiment.

Sources

Frequently Asked Questions

Is CRM overvalued or undervalued?
On trailing-twelve-month earnings, CRM trades at 35.8x versus a Technology sector average of 96.1x in our coverage — a 62.7% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing CRM with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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