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Few if any institutional investors are looking at CRM on a P/E basis. They're valuing the company usually on EV/Sales and EV/FCF.
by _sword 7y ago
Few if any institutional investors are looking at CRM on a P/E basis. They're valuing the company usually on EV/Sales and EV/FCF.
- cujic9 7y agoThat's a strange claim. First, how do you know what all institutional investors are thinking? Second, Sales and FCF straddle Earnings on the income statement. A focus on EV/Sales suggests that investors are optimistic about growth and ignoring the spending required to get there. A focus on EV/FCF suggests that investors are optimistic about increased efficiency and cutting costs.