Highly Regarded

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

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

68% Discount TTM fundamentals · sector averages from covered peers

CRM trades at 24.8× TTM earnings — a 68% discount to its Technology sector average of 78.5× in our coverage.

The Numbers

P/E (TTM)

24.8×

Sector avg: 78.5×

P/S (TTM)

4.1×

Sector avg: 18.7×

Market Cap

$160.07B

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 $170.83 24.8×
NVDA $202.77 50.2×
AAPL $333.66 42.2×
MSFT $393.89 24.6×
AVGO $370.92 77.8×
AMD $495.65 187.0×
INTC $94.98 —
CSCO $111.92 43.2×
ORCL $126.41 29.3×
PLTR $132.35 307.8×
TXN $283.97 52.1×
QCOM $171.79 34.7×
ADBE $237.22 14.2×

Is the Discount Justified?

July 6, 2026

Salesforce Inc. trades at a P/E of 24.1x, a notable discount to the Technology sector average of 76.3x. This lower multiple comes despite strong recent performance, including record Q1 FY2027 revenue of $11.13 billion, up 13.27% year-over-year, and non-GAAP EPS growth of 50%. The company's "Agentic AI" initiatives are showing significant traction, with Agentforce and Data 360 annual recurring revenue (ARR) reaching nearly $3.4 billion, a more than 200% year-over-year increase. Salesforce maintains robust margins, reporting a gross profit margin of 76.9% and a non-GAAP operating margin of 34.8% in Q1 FY2027. While the technology sector generally commands high valuations, the market's current perception of Salesforce's growth trajectory relative to its peers, despite strong AI-driven results, may be influencing its current P/E.

Sources

Frequently Asked Questions

Is CRM overvalued or undervalued?
On trailing-twelve-month earnings, CRM trades at 24.8x versus a Technology sector average of 78.5x in our coverage — a 68.4% 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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Same question, Technology peers

AVGO NVDA TXN INTC ADBE QCOM