Latest Ratios: P/E Ratio 21.7x · EV/EBITDA 11.8x · 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 | $138.8B | $202.9B | $332.8B | $276.6B | $167.5B | $226.6B | $209.8B | $155.0B | $117.8B | $83.7B | $55.4B |
| Enterprise Value | $148.7B | $212.8B | $335.4B | $280.7B | $174.5B | $235.1B | $209.9B | $156.7B | $118.3B | $83.6B | $56.6B |
| P/E Ratio → | 21.73 | 27.22 | 53.73 | 66.93 | 799.86 | 157.18 | 51.50 | 1215.40 | 106.27 | 670.06 | 304.23 |
| P/S Ratio | 3.34 | 4.89 | 8.78 | 7.94 | 5.34 | 8.55 | 9.87 | 9.06 | 8.87 | 7.98 | 6.60 |
| P/B Ratio | 2.74 | 3.43 | 5.44 | 4.64 | 2.87 | 3.90 | 5.06 | 4.57 | 7.55 | 8.06 | 7.38 |
| P/FCF | 9.64 | 14.09 | 26.77 | 29.12 | 26.53 | 42.89 | 51.28 | 42.02 | 42.02 | 37.97 | 32.61 |
| P/OCF | 9.26 | 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 | 11.85 | 16.96 | 31.39 | 34.10 | 36.24 | 61.13 | 63.57 | 64.43 | 77.97 | 67.56 | 66.56 |
| EV / EBIT | 16.67 | 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 | 1.0% | 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 | 4.6% | 3.7% | 1.9% | 1.5% | 0.1% | 0.6% | 1.9% | 0.1% | 0.9% | 0.1% | 0.3% |
| FCF Yield | 10.4% | 7.1% | 3.7% | 3.4% | 3.8% | 2.3% | 2.0% | 2.4% | 2.4% | 2.6% | 3.1% |
| Buyback Yield | 9.1% | 6.2% | 2.4% | 2.8% | 2.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 10.1% | 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 |
Elevated debt-to-equity leverage
According to current market data, Salesforce trades at a forward P/E of 13.45, which appears to discount the company's transition from a high-growth SaaS disruptor to a mature enterprise software provider focused on margin expansion and capital returns rather than aggressive, acquisition-led top-line growth.
The current valuation multiple suggests that investors are pricing in a more conservative growth trajectory compared to high-growth peers like ServiceNow. While the PEG ratio of 1.66 indicates a reasonable valuation relative to expected earnings growth, the market appears to be waiting for further evidence that the shift toward AI-driven pricing can sustain long-term momentum.
Based on reported financial statements, Salesforce's ROIC has remained stagnant in the 2% to 3% range over the last ten quarters, a figure that significantly trails industry leaders and reflects the heavy burden of historical acquisition-related intangibles on the company's invested capital base.
The persistent gap between the company's operational success and its low ROIC suggests that the massive goodwill accumulated from past M&A activity continues to dilute capital efficiency. Investors should monitor whether the recent pivot toward share repurchases and organic growth can eventually improve these returns by reducing the equity base and focusing on higher-margin, internally developed product lines.
As reported in recent SEC filings, the company's DSO has fluctuated significantly between 45 and 81 days over the past ten quarters, indicating that the timing of large enterprise contract renewals and billing cycles creates meaningful variability in the company's underlying working capital efficiency.
This inconsistency in cash collection cycles suggests that Salesforce's operational efficiency is highly sensitive to the seasonality of enterprise sales. While the high gross margins provide a buffer, the lack of a stable cash conversion cycle warrants further investigation into whether recent changes in sales incentives are impacting the timing of customer payments.
Institutional investors often misapply GAAP net margin as the primary indicator of Salesforce's earning power, failing to account for the significant non-cash impact of stock-based compensation and the amortization of intangibles that frequently obscure the company's true underlying cash-generative capacity.
Relying solely on GAAP net margins may lead to an underestimation of the company's profitability, as these figures are heavily influenced by accounting choices related to past acquisitions. A more accurate assessment of the business model's health requires focusing on free cash flow margins, which better reflect the actual cash available for dividends and share repurchases.
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 21.7x. The historical average is 100.5x.
Salesforce, Inc.'s current EV/EBITDA is 11.8x. 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 21.7x. Compare with industry peers and growth rates for a complete picture.
Salesforce, Inc.'s current dividend yield is 0.98% 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.