Salesforce, Inc. (CRM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-5.9%

$218.54

vs $232.21 price

Levered DCF

$287.39

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.68

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	27.04×	53.06×	66.14×	799.86×	154.06×	51×	1,215.4×	102.68×
P/B	3.41×	5.37×	4.59×	2.86×	3.82×	5×	4.46×	7.31×
P/S	4.86×	8.67×	7.85×	5.31×	8.39×	9.76×	8.84×	8.59×
EV / EBITDA	16.08×	29.73×	27.91×	30.78×	45.68×	62.87×	58.84×	75.83×
Gross margin	77.7%	77.2%	75.5%	73.3%	73.5%	74.4%	75.2%	74.0%
Operating margin	21.5%	19.0%	14.4%	3.3%	2.1%	2.1%	1.7%	4.0%
Net margin	18.0%	16.4%	11.9%	0.7%	5.5%	19.2%	0.7%	8.4%
Current ratio	0.76×	1.06×	1.09×	1.02×	1.05×	1.23×	1.08×	0.95×
Debt / equity	0.29×	0.19×	0.21×	0.24×	0.24×	0.15×	0.17×	0.23×
Interest coverage	27.52×	26.49×	0×	3.59×	2.49×	3.61×	2.27×	3.47×
Dividend yield	0.8%	0.5%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	21.3%	24.8%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	12.6%	10.1%	6.9%	0.4%	2.5%	9.8%	0.4%	7.1%
Return on invested capital	8.8%	7.9%	5.6%	0.4%	0.7%	0.9%	0.1%	2.7%
Return on assets	6.6%	6.0%	4.1%	0.2%	1.5%	6.1%	0.2%	3.6%
Free cash flow yield	7.1%	3.8%	3.5%	3.8%	2.4%	2.0%	2.4%	2.5%
Earnings yield	3.7%	1.9%	1.5%	0.1%	0.6%	2.0%	0.1%	1.0%
Enterprise value	$211.5B	$331.3B	$277.9B	$173.7B	$230.7B	$207.5B	$152.9B	$115B
Net debt / EBITDA	0.75×	0.23×	0.41×	1.25×	1.69×	0.03×	0.66×	0.6×
Cash conversion cycle (days)	126	115	120	125	134	-159	-164	-149