CRMNEUTRAL

CRM P/E Ratio Analysis

23.7x

Higher than 32% of Technology sector peers

Updated 101h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 22.6x means investors pay $22.60 for every $1 of Salesforce’s trailing earnings — a standard measure of how expensive a stock is relative to its profitability.

Sector Performance

32th percentile

CRM

23.7x

Sector Median

37.1x

Sector Avg

160.9x

Prior Period

22.6x(Aug 2026)

↓ Declining

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Deep Analysis

A P/E ratio of 22.6x means investors pay $22.60 for every $1 of Salesforce’s trailing earnings — a standard measure of how expensive a stock is relative to its profitability.

This sits well below the sector median of 37.1x, placing CRM in the 32nd percentile among its technology peers, so it is cheaper than most comparable companies. The trend data is not available: both the year-over-year change and quarter-over-quarter change are marked N/A, meaning no direction can be inferred from the historical figures provided. The low relative valuation may reduce downside risk if earnings hold, but the absence of trend information leaves uncertainty about whether this discount is widening or narrowing. This metric supports the overall NEUTRAL verdict, as the favorable level is offset by the lack of trend confirmation.

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 23.7x compares to a Technology sector median of 37.1x, placing it in the 32th percentile.

Who are CRM's closest peers by P/E Ratio?

The closest Technology peers by P/E Ratio include: AAPL (37.1x), AMAT (36.9x), APH (37.6x), AKAM (37.6x), APP (38.8x).

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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.