Is Salesforce, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Salesforce, Inc. has moved from very attractive to attractive. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 38, an EV to EBITDA ratio of 19.62, and a PEG ratio of 2.14, which are higher than the average for its peers. For instance, Microsoft Corp. has a P/E of 36.17 and an EV to EBITDA of 22.50, while Adobe, Inc. shows a more favorable P/E of 29.80.
Salesforce's stock has underperformed compared to the S&P 500, with a year-to-date return of -27.29% versus the S&P 500's 13.30%. This trend reinforces the notion that the stock may be overvalued relative to its performance and peer comparisons.