A strong performer from Friday afternoon's trading session is Salesforce, whose shares rose 2.8% to $215.31 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 27.16 and an average price to book (P/B) ratio of 6.23. In contrast, Salesforce has a trailing 12 month P/E ratio of 566.6 and a P/B ratio of 3.68.
Salesforce's PEG ratio is 1.35, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.