P/E Ratio
Higher than 29% of Technology sector peers
Updated 11h ago
Sector Performance
29th percentileCRM
22.1x
Sector Median
38.9x
Sector Avg
62.9x
Deep Analysis
# P/E Ratio Analysis: CRM
Salesforce trades at 22.7x earnings, meaning investors pay $22.70 for every dollar of annual profit the company generates. This valuation sits 37% below the technology sector median of 36.4x, positioning CRM in the 35th percentile among sector peers—a lower-priced cohort relative to comparable companies. The P/E ratio has remained flat at 22.7x over the past four quarters, indicating stable earnings growth aligned with stock price movements. For investors, this discount to sector peers suggests CRM offers more attractive entry pricing than the typical technology company, though the valuation advantage reflects the market's more modest growth expectations compared to peers trading at premium multiples.
Frequently Asked Questions
What does the P/E Ratio tell investors about CRM?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
How does CRM's P/E Ratio compare to its sector?
CRM's P/E Ratio of 22.1x compares to a Technology sector median of 38.9x, placing it in the 29th percentile.
Who are CRM's closest peers by P/E Ratio?
The closest Technology peers by P/E Ratio include: MSFT (25.0x), TTD (22.6x), PCTY (22.3x), QRVO (21.8x), LIF (20.9x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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22.1x
Sector Median
38.9x
Sector Avg
62.9x
How CRM's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.