Highly Regarded

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

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

70% Discount TTM fundamentals · sector averages from covered peers

CRM trades at 24.0× TTM earnings — a 70% discount to its Technology sector average of 81.0× in our coverage.

The Numbers

P/E (TTM)

24.0×

Sector avg: 81.0×

P/S (TTM)

3.9×

Sector avg: 19.2×

Market Cap

$155.20B

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 $165.63 24.0×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
PLTR $132.53 308.2×
TXN $303.53 55.7×
QCOM $186.38 37.7×
ADBE $218.11 13.1×

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 24.0x versus a Technology sector average of 81.0x in our coverage — a 70.3% 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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