CRMNEUTRAL

CRM EV/EBITDA Analysis

18.5x

Higher than 46% of Technology sector peers

Updated 101h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company's total value (market cap plus debt minus cash) relative to its earnings before interest, taxes, depreciation, and amortization; a 15.5x figure means investors pay $15.50 for every $1 of that operating earnings stream.

Sector Performance

46th percentile

CRM

18.5x

Sector Median

19.1x

Sector Avg

44.5x

Prior Period

15.5x(Aug 2026)

↓ Declining

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Deep Analysis

This is below the Technology sector median of 18.9x, placing Salesforce in the 40th percentile among peers, so the stock is cheaper than the typical sector company. The trend is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no direction can be inferred from this metric. A level below the sector median suggests a relative valuation discount, but the absence of any trend data leaves uncertainty about whether that discount is widening or narrowing. This creates a balanced risk profile: the lower multiple offers room for upside if earnings hold, yet no momentum signal exists to confirm improvement. The 15.5x EV/EBITDA supports the overall NEUTRAL verdict, as it neither signals a clear bargain nor an expensive overvaluation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about CRM?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does CRM's EV/EBITDA compare to its sector?

CRM's EV/EBITDA of 18.5x compares to a Technology sector median of 19.1x, placing it in the 46th percentile.

Who are CRM's closest peers by EV/EBITDA?

The closest Technology peers by EV/EBITDA include: AMAT (19.3x), MSFT (18.9x), SQ (18.2x), ADI (24.2x), APH (24.5x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.