Is Salesforce, Inc. (CRM) Undervalued?
Based on the current stock price of $266.08 and a P/E ratio of 35.57,Salesforce, Inc. has a PEG ratio of 2.31.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.31, CRM appears to be potentially overvalued relative to its growth rate of 15.40%.
Based on a PEG ratio of 2.22 (adjusted for dividends).
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How we analyzed CRM
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 35.57and dividing it by the annual growth rate of 15.40%.
PEG = 35.57 (P/E) ÷ 15.40 (Growth) = 2.31
Frequently Asked Questions about CRM
What is the current PEG Ratio for Salesforce, Inc. (CRM)?+
The current PEG Ratio for Salesforce, Inc. is 2.31. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CRM stock undervalued right now?+
Based on the PEG ratio of 2.31, Salesforce, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CRM?+
The PEGY ratio for Salesforce, Inc. is 2.22. This metric accounts for dividend yield (0.63%), providing a more complete valuation picture.