Salesforce Price to Earnings Ratio from 2010 to 2024

CRM Stock  USD 314.64  2.24  0.71%   
Salesforce Price to Earnings Ratio yearly trend continues to be very stable with very little volatility. Price to Earnings Ratio is likely to grow to 992.46 this year. During the period from 2010 to 2024, Salesforce Price to Earnings Ratio quarterly data regression pattern had sample variance of 325,923 and median of  102.68. At this time, Salesforce's Net Income Common Stock is very stable as compared to the past year. As of the 4th of March 2024, Operating Expenses is likely to grow to about 27.3 B, while Weighted Average Shares is likely to drop about 1 B.
Check Salesforce financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Salesforce main balance sheet or income statement drivers, such as Direct Expenses of 8.1 B, Consolidated Income of 245.5 M or Cost of Revenue of 10.4 B, as well as many exotic indicators such as Interest Coverage of 131, Long Term Debt to Equity of 0.24 or Calculated Tax Rate of 66.51. Salesforce financial statements analysis is a perfect complement when working with Salesforce Valuation or Volatility modules.
  
This module can also supplement Salesforce's financial leverage analysis and stock options assessment as well as various Salesforce Technical models . Check out the analysis of Salesforce Correlation against competitors.
To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.

Salesforce Price to Earnings Ratio Breakdown

Showing smoothed Price to Earnings Ratio of Salesforce with missing and latest data points interpolated. An alternative to [PE] representing the ratio between [Price] and [EPSUSD]. Salesforce's Price to Earnings Ratio historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Salesforce's overall financial position and show how it may be relating to other accounts over time.
ViewLast Reported 291.69 X10 Years Trend
Slightly volatile
   Price to Earnings Ratio   
       Timeline  

Salesforce Price to Earnings Ratio Regression Statistics

Arithmetic Mean193.55
Geometric Mean263.55
Coefficient Of Variation294.96
Mean Deviation425.02
Median102.68
Standard Deviation570.90
Sample Variance325,923
Range2,188
R-Value0.71
Mean Square Error174,306
R-Squared0.50
Significance0
Slope90.57
Total Sum of Squares4,562,920

Salesforce Price to Earnings Ratio History

2024 992.46
2023 919.84
2022 799.86
2021 154.06
2020 50.35
2019 1215.4
2018 102.68
2017 227.82
2016 168.3
2015 -972.29
2014 -134.4

About Salesforce Financial Statements

There are typically three primary documents that fall into the category of financial statements. These documents include Salesforce income statement, its balance sheet, and the statement of cash flows. Salesforce investors use historical funamental indicators, such as Salesforce's Price to Earnings Ratio, to determine how well the company is positioned to perform in the future. Although Salesforce investors may use each financial statement separately, they are all related. The changes in Salesforce's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Salesforce's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. We offer a historical overview of the basic patterns found on Salesforce Financial Statements. Understanding these patterns can help to make the right decision on long term investment in Salesforce. Please read more on our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2024
Price to Earnings Ratio 919.84  992.46 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA5.1 B5.5 B
Earnings before Tax759 M777.8 M

Salesforce Investors Sentiment

The influence of Salesforce's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Salesforce. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Salesforce's public news can be used to forecast risks associated with an investment in Salesforce. The trend in average sentiment can be used to explain how an investor holding Salesforce can time the market purely based on public headlines and social activities around Salesforce. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Salesforce's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Salesforce's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Salesforce's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Salesforce.

Salesforce Implied Volatility

    
  33.1  
Salesforce's implied volatility exposes the market's sentiment of Salesforce stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Salesforce's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Salesforce stock will not fluctuate a lot when Salesforce's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Salesforce in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Salesforce's short interest history, or implied volatility extrapolated from Salesforce options trading.

Pair Trading with Salesforce

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Salesforce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Salesforce will appreciate offsetting losses from the drop in the long position's value.

Moving against Salesforce Stock

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The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Salesforce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Salesforce to buy it.
The correlation of Salesforce is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Salesforce moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Salesforce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports:
Check out the analysis of Salesforce Correlation against competitors.
To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Salesforce's price analysis, check to measure Salesforce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Salesforce is operating at the current time. Most of Salesforce's value examination focuses on studying past and present price action to predict the probability of Salesforce's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Salesforce's price. Additionally, you may evaluate how the addition of Salesforce to your portfolios can decrease your overall portfolio volatility.
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Is Salesforce's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Salesforce. If investors know Salesforce will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Salesforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
4.952
Earnings Share
4.21
Revenue Per Share
35.787
Quarterly Revenue Growth
0.108
Return On Assets
0.0377
The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Salesforce's market value can be influenced by many factors that don't directly affect Salesforce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Salesforce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.