Salesforce (CRM): Evaluating Valuation as Investor Sentiment Cools and Long-Term Returns Hold

Salesforce (CRM) shares have seen slight movement recently, leaving investors considering what may influence the stock in the coming weeks. With the price hovering around $240, the market response suggests a wait-and-see approach.

See our latest analysis for Salesforce.

Looking at the longer-term picture, Salesforce’s share price return over the past year is down more than 27 percent. The recent lackluster movement hints at investor caution about near-term growth or shifting sentiment in the tech sector. However, its three-year total shareholder return still sits above 62 percent, reflecting solid compounding for those who have stuck with the stock despite swings in momentum.

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With shares still well below their peak and analysts suggesting upside potential, the key question emerges: does the current price offer hidden value, or are expectations for future growth already built in?

Most Popular Narrative: 10.5% Undervalued

With Salesforce’s last close at $240.43 and the narrative fair value set at $268.76, there is room for optimism among investors focused on intrinsic worth. That perspective sets the stage for the narrative’s most compelling point.

Salesforce (NYSE: CRM) delivered another strong quarter, proving it can grow revenue while expanding profitability, something investors have demanded for years. For Q2 fiscal 2026 (ended July 31, 2025), revenue climbed 10% year-over-year to $10.2 billion, with subscription and support revenue up 11% to $9.7 billion.

Read the complete narrative.

Want to see the math behind that fair value? The narrative is built on ambitious forecasts for margins, future cash flow, and strong operating discipline. One bold assumption is making all the difference. Find out which high-impact metric could change the outlook in a hurry.

Result: Fair Value of $268.76 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, higher AI costs and aggressive enterprise negotiations could quickly challenge Salesforce’s momentum if efficiency gains do not keep pace with spending.

Find out about the key risks to this Salesforce narrative.

Build Your Own Salesforce Narrative

Curious to dig into the numbers yourself or arrive at a different perspective? You can shape your own Salesforce story in under three minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Salesforce.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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