# Salesforce Inc. (CRM) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Technology / Software. Price $222.20, market value $182.9 billion.

## Valuation
- **P/E (trailing): 20.3×** (5-yr avg 217.3×, 3-yr avg 48.7×). Salesforce Inc. trades at 20.3× trailing earnings, well below its own five-year average of 217.3×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 13.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.61**. A PEG of 0.61 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 4.2×**. Each dollar of revenue is priced at 4.2×.
- **Price / book: 4.8×**. The shares trade at 4.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 18.6×**. Enterprise value is 18.6× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.3%** (5-yr avg 4.1%). Free cash flow equals 8.3% of the market value, above its five-year average of 4.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.9%**. The inverse of the P/E: 4.9% of the price is earned each year.

## Profitability
- **Gross margin: 77.3%**. Salesforce Inc. keeps 77.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 19.9%**. 19.9% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 18.0%**. 18.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.6%**. 12.6% on shareholders' equity is solid.
- **Return on invested capital: 10.4%**. Return on all capital, debt included, is 10.4%.
- **Return on assets: 8.6%**. Each dollar of assets produces 8.6% of profit.

## Growth
- **Revenue growth (1 yr): 9.6%** (3-yr 9.8%/yr, 5-yr 14.3%/yr). Revenue grew 9.6% over the last year, against 14.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 22.6%** (3-yr 233.7%/yr, 5-yr 12.2%/yr). Earnings per share rose 22.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 31.6%/yr**. Free cash flow has compounded at 31.6% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.24**. Debt is 0.24 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 0.76** (quick 0.76). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 3.32**. A Z-score of 3.32 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.79%** ($1.71 per share, trailing). Salesforce Inc. yields 0.79%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 21%** (10% of free cash flow). 21% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.

## Analyst view
- **Analyst consensus: buy** (53 analysts). 53 analysts cover Salesforce Inc.; the consensus is buy, with an average price target of $287.08 (+29% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -12.6%** (YTD -14.2%, 3-mo 21.6%). The shares are down 12.6% over twelve months including dividends.
- **From 52-week high: -17.4%** (51.9% above the low). Trading 17% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 0.45** (volatility 47%). Beta of 0.45 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CRM · Page: https://foliofundamentals.com/stocks/crm

Not investment advice.