Why is salesforce pe ratio so high

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salesforce.com certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. The P/E is probably high because investors think the company will continue to navigate the broader market headwinds better than most.Dec 26, 2020

What is the PE ratio of Salesforce?

The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure. Salesforce PE ratio as of May 10, 2022 is 64.53. Please refer to the Stock Price Adjustment Guide for more information on our historical prices.

What is Salesforce’s price to earnings ratio?

The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share (EPS) number. The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure. Salesforce, Inc PE ratio as of November 27, 2019 is 110.76.

What does a higher PE ratio mean?

A higher PE ratio means that investors are paying more for each unit of net income, making it more expensive to purchase than a stock with a lower P/E ratio.

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Is Salesforce overvalued?

Bottomline answer: yes, Salesforce’s stock is undervalued.


What is the PE ratio of Salesforce?

Salesforce PE ratio as of June 01, 2022 is 76.55. Please refer to the Stock Price Adjustment Guide for more information on our historical prices.


Is it good if PE ratio is high?

Is a High PE Ratio Good or Bad? If you were wondering “Is a high PE ratio good?”, the short answer is “no”. The higher the P/E ratio, the more you are paying for each dollar of earnings. This makes a high PE ratio bad for investors, strictly from a price to earnings perspective.


Is Salesforce a buy hold or sell?

Salesforce has received a consensus rating of Buy. The company’s average rating score is 2.95, and is based on 35 buy ratings, 3 hold ratings, and no sell ratings.


What is Tesla’s PE ratio?

95.46The PE ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure. Tesla PE ratio as of June 03, 2022 is 95.46.


Is 200 a high PE ratio?

A P/E ratio of 200 is high. But it is basically saying that people expect the company to grow earnings to be 15 to 20 times as large as they are now (so the P/E ratio would be 10 to 15).


Is 8 a good PE ratio?

To illustrate, a stock with a PE ratio of 8 has an earnings yield of 12.5%, which may provide an attractive alternative to treasury bonds yielding only 4%.


Is 30 a good PE ratio?

P/E 30 Ratio Explained A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company’s early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.


Salesforce.com PE Ratio Historical Data

The historical data trend for Salesforce.com’s PE Ratio can be seen below:


Salesforce.com PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company’s market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.


Salesforce.com PE Ratio Related Terms

Thank you for viewing the detailed overview of Salesforce.com’s PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Salesforce.com Business Description

Salesforce.com provides enterprise cloud computing solutions, including Sales Cloud, the company’s main customer relationship management software-as-a-service product.


Salesforce.com Headlines

Will Salesforce.com (CRM) Beat Estimates Again in Its Next Earnings Report?


Salesforce (CRM)

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.


About PE Ratio (TTM)

salesforce.com, inc. has a trailing-twelve-months P/E of 40.01X compared to the Computer – Software industry’s P/E of 31.00X.

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