Is Salesforce, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Salesforce, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its valuation ratios, which include a P/E ratio of 38, a Price to Book Value of 4.33, and an EV to EBITDA of 19.62. In comparison to peers, Microsoft Corp. has a P/E of 36.17, while Adobe, Inc. stands at a more attractive P/E of 29.80, suggesting that Salesforce may be priced higher relative to its industry counterparts.
Recent performance shows that Salesforce has underperformed against the S&P 500, with a year-to-date return of -27.29% compared to the index's 13.30%. This trend reinforces the notion that Salesforce is overvalued, as its stock has not kept pace with broader market returns.