Latest Ratios: P/E Ratio 30.1x · EV/EBITDA 16.1x · ROE 12.4%. (2003–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $192.2B | $202.9B | $332.8B | $276.6B | $167.5B | $226.6B | $209.8B | $155.0B | $117.8B | $83.7B | $55.4B |
| Enterprise Value | $202.1B | $212.8B | $335.4B | $280.7B | $174.5B | $235.1B | $209.9B | $156.7B | $118.3B | $83.6B | $56.6B |
| P/E Ratio → | 30.09 | 27.22 | 53.73 | 66.93 | 799.86 | 157.18 | 51.50 | 1215.40 | 106.27 | 670.06 | 304.23 |
| P/S Ratio | 4.63 | 4.89 | 8.78 | 7.94 | 5.34 | 8.55 | 9.87 | 9.06 | 8.87 | 7.98 | 6.60 |
| P/B Ratio | 3.79 | 3.43 | 5.44 | 4.64 | 2.87 | 3.90 | 5.06 | 4.57 | 7.55 | 8.06 | 7.38 |
| P/FCF | 13.35 | 14.09 | 26.77 | 29.12 | 26.53 | 42.89 | 51.28 | 42.02 | 42.02 | 37.97 | 32.61 |
| P/OCF | 12.82 | 13.53 | 25.42 | 27.03 | 23.55 | 37.76 | 43.69 | 35.78 | 34.66 | 30.56 | 25.62 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.12 | 8.85 | 8.05 | 5.57 | 8.87 | 9.87 | 9.16 | 8.91 | 7.98 | 6.74 |
| EV / EBITDA | 16.10 | 16.96 | 31.39 | 34.10 | 36.24 | 61.13 | 63.57 | 64.43 | 77.97 | 67.56 | 66.56 |
| EV / EBIT | 22.66 | 22.35 | 43.75 | 46.79 | 93.94 | 429.02 | 461.22 | 338.42 | 221.09 | 184.22 | 211.09 |
| EV / FCF | — | 14.78 | 26.97 | 29.55 | 27.65 | 44.50 | 51.30 | 42.49 | 42.20 | 37.95 | 33.31 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.7% | 77.7% | 77.2% | 75.5% | 73.3% | 73.5% | 74.4% | 75.2% | 74.0% | 74.1% | 73.9% |
| Operating Margin | 21.5% | 21.5% | 19.0% | 14.4% | 3.3% | 2.1% | 2.1% | 1.7% | 4.0% | 4.3% | 2.6% |
| Net Profit Margin | 18.0% | 18.0% | 16.4% | 11.9% | 0.7% | 5.5% | 19.2% | 0.7% | 8.4% | 3.4% | 3.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.4% | 12.4% | 10.3% | 7.0% | 0.4% | 2.9% | 10.8% | 0.5% | 8.5% | 4.0% | 5.2% |
| ROA | 6.9% | 6.9% | 6.1% | 4.2% | 0.2% | 1.8% | 6.7% | 0.3% | 4.2% | 1.8% | 2.1% |
| ROIC | 10.1% | 10.1% | 8.5% | 5.8% | 1.2% | 0.8% | 0.9% | 0.9% | 3.0% | 3.6% | 2.2% |
| ROCE | 11.9% | 11.9% | 9.7% | 6.9% | 1.4% | 0.9% | 1.0% | 1.0% | 3.4% | 4.1% | 2.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.19 | 0.21 | 0.24 | 0.24 | 0.15 | 0.17 | 0.23 | 0.24 | 0.37 |
| Debt / EBITDA | 1.37 | 1.37 | 1.07 | 1.53 | 2.93 | 3.64 | 1.90 | 2.41 | 2.36 | 2.02 | 3.28 |
| Net Debt / Equity | — | 0.17 | 0.04 | 0.07 | 0.12 | 0.15 | 0.00 | 0.05 | 0.03 | -0.00 | 0.16 |
| Net Debt / EBITDA | 0.78 | 0.78 | 0.24 | 0.50 | 1.47 | 2.22 | 0.03 | 0.71 | 0.33 | -0.03 | 1.39 |
| Debt / FCF | — | 0.68 | 0.20 | 0.43 | 1.12 | 1.61 | 0.02 | 0.47 | 0.18 | -0.02 | 0.70 |
| Interest Coverage | — | — | 28.18 | — | 6.47 | 2.49 | 3.61 | 3.53 | 3.47 | 5.22 | 3.01 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.76 | 0.76 | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | 0.95 | 0.82 |
| Quick Ratio | 0.76 | 0.76 | 1.06 | 1.09 | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | 0.95 | 0.82 |
| Cash Ratio | 0.26 | 0.26 | 0.50 | 0.53 | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | 0.45 | 0.30 |
| Asset Turnover | — | 0.37 | 0.37 | 0.35 | 0.32 | 0.28 | 0.32 | 0.31 | 0.43 | 0.48 | 0.48 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 126.04 | 115.05 | 119.52 | 125.21 | 134.18 | 133.72 | 131.80 | 135.32 | 136.56 | 140.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.8% | 0.5% | — | — | — | — | — | — | — | — |
| Payout Ratio | 21.3% | 21.3% | 24.8% | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 3.7% | 1.9% | 1.5% | 0.1% | 0.6% | 1.9% | 0.1% | 0.9% | 0.1% | 0.3% |
| FCF Yield | 7.5% | 7.1% | 3.7% | 3.4% | 3.8% | 2.3% | 2.0% | 2.4% | 2.4% | 2.6% | 3.1% |
| Buyback Yield | 6.6% | 6.2% | 2.4% | 2.8% | 2.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.3% | 7.0% | 2.8% | 2.8% | 2.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $956M | $974M | $984M | $997M | $974M | $930M | $850M | $775M | $735M | $700M |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying CRM stock.
Salesforce, Inc.'s current P/E ratio is 30.1x. The historical average is 100.5x. This places it at the 10th percentile of its historical range.
Salesforce, Inc.'s current EV/EBITDA is 16.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 52.9x.
Salesforce, Inc.'s return on equity (ROE) is 12.4%. The historical average is 4.1%.
Based on historical data, Salesforce, Inc. is trading at a P/E of 30.1x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Salesforce, Inc.'s current dividend yield is 0.71% with a payout ratio of 21.3%.
Salesforce, Inc. has 77.7% gross margin and 21.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Salesforce, Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Leverage spike from recent debt issuance
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Growth Transition
Salesforce trades at a forward P/E of 15.94, a significant discount to its trailing P/E of 32.82, suggesting the market is pricing in substantial earnings growth from margin expansion rather than revenue acceleration, as reported in recent financial statements.
The forward EV/EBITDA of 8.92 is notably lower than the trailing 17.49, indicating that the valuation is heavily dependent on the company's ability to sustain and grow its recently expanded operating margins. Compared to peers like Microsoft (Forward P/E 28.61) and Adobe (Forward P/E 17.46), Salesforce's forward multiple appears to reflect a more mature growth profile, yet the PEG ratio of 2.68 suggests the market is not pricing in aggressive future growth. This valuation framework implies that any stumble in the margin expansion narrative or a failure to re-accelerate growth through AI monetization could lead to multiple compression.
Margin Expansion Drives Earnings Power
Operating margin has expanded to 20.5% in Q2 FY2027 from 18.7% in Q1 FY2025, demonstrating that disciplined cost control is now the primary driver of earnings growth, outpacing the deceleration in top-line revenue growth.
The gross margin remains structurally high near 77%, but the key trend is the significant improvement in operating margin, which has been fueled by a reduction in SG&A as a percentage of revenue. This shift suggests the company is successfully transitioning from a growth-at-all-costs model to one focused on operational efficiency and profitability. However, the net margin of 31.1% in Q2 FY2027 is heavily influenced by non-operating items and tax benefits, making the operating margin a more reliable indicator of the core business's true earning power.
Low Returns on Capital Despite Margin Gains
Despite strong operating margins, ROIC remains low at 2.5% in Q2 FY2027, indicating that the company's massive asset base, particularly goodwill from acquisitions, is diluting the returns generated on invested capital.
The ROIC of 2.5% is significantly below the cost of capital for a software company, suggesting that the capital invested in past acquisitions like Slack and Tableau has not yet generated commensurate returns. While ROE has improved to 9.7%, this is largely a function of the recent increase in financial leverage from the debt-funded buyback program, not an improvement in operational efficiency. The persistent gap between high operating margins and low ROIC highlights a fundamental challenge: the company's asset-light operational model is masked by a balance sheet heavy with intangible assets from its acquisition history.
Leverage Spike Reshapes Capital Structure
The debt-to-equity ratio has surged to 1.09 in Q2 FY2027 from 0.19 just two quarters prior, a dramatic shift that appears to be a deliberate strategy to fund shareholder returns, as evidenced by the concurrent massive share repurchase program.
This rapid increase in leverage, with total debt rising to $41.7B, has fundamentally altered the company's risk profile. While interest coverage remains strong at 10.62x, the new debt load is a significant departure from the historically conservative balance sheet. The move suggests management is confident in the stability of recurring cash flows to service this debt, but it also introduces refinancing risk and reduces financial flexibility. Investors should monitor whether this leverage is used to opportunistically repurchase shares at attractive valuations or if it becomes a permanent feature of the capital structure.
Working Capital Tightness Evident
The current ratio has fallen below 1.0 to 0.84 in Q2 FY2027, indicating that short-term liabilities now exceed short-term assets, a position that appears to be driven by the timing of large annual billings and collections rather than operational distress.
The quick ratio mirrors the current ratio at 0.84, confirming that the company's liquidity position is not dependent on inventory, which is minimal. This tight working capital position is typical for subscription software companies that collect cash upfront, but the decline from levels above 1.0 in prior quarters warrants monitoring. The company's ability to generate robust operating cash flow, as seen in the 58.9% FCF margin in Q1 FY2027, provides a buffer, but the volatility in cash flow from working capital swings means the liquidity position can change rapidly quarter-to-quarter.
The Misleading Power of Net Margin
The net margin of 31.1% in Q2 FY2027 is the ratio most commonly misapplied to this business model, as it is heavily inflated by non-operating items and does not reflect the core operational profitability or the true cash cost of the business.
For a company with significant stock-based compensation and amortization of intangibles, net margin can be a misleading indicator of sustainable earning power. The operating margin of 20.5% is a more accurate reflection of the core business's profitability. Furthermore, the high net margin in a given quarter can be driven by one-time tax benefits or investment gains, which are not recurring. Analysts should instead focus on operating margin trends and free cash flow conversion to assess the true economic earnings of the business, as these metrics are less susceptible to accounting distortions and better reflect the company's ability to generate cash from its operations.