Salesforce Valuation

Is FOO0 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FOO0 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FOO0 (€18.1) is trading below our estimate of fair value (€22.75)

Significantly Below Fair Value: FOO0 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for FOO0?

Key metric: As FOO0 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FOO0. This is calculated by dividing FOO0's market cap by their current earnings.
What is FOO0's PE Ratio?
PE Ratio58.1x
EarningsUS$5.63b
Market CapUS$326.97b

Price to Earnings Ratio vs Peers

How does FOO0's PE Ratio compare to its peers?

The above table shows the PE ratio for FOO0 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average55.4x
SAP SAP
95.7x40.8%€262.8b
NEM Nemetschek
67.5x18.6%€11.5b
TMV TeamViewer
15x11.1%€1.8b
AOF ATOSS Software
43.4x7.8%€1.9b
FOO0 Salesforce
58.1x13.9%€327.0b

Price-To-Earnings vs Peers: FOO0 is expensive based on its Price-To-Earnings Ratio (58.1x) compared to the peer average (55.4x).


Price to Earnings Ratio vs Industry

How does FOO0's PE Ratio compare vs other companies in the European Software Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FOO0 58.1xIndustry Avg. 28.1xNo. of Companies19PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FOO0 is expensive based on its Price-To-Earnings Ratio (58.1x) compared to the European Software industry average (28.1x).


Price to Earnings Ratio vs Fair Ratio

What is FOO0's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FOO0 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio58.1x
Fair PE Ratio46.9x

Price-To-Earnings vs Fair Ratio: FOO0 is expensive based on its Price-To-Earnings Ratio (58.1x) compared to the estimated Fair Price-To-Earnings Ratio (46.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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