Salesforce (CRM): Is the Stock Undervalued After Recent Narrow Trading Range?

Salesforce (CRM) has been moving in a narrow range recently, with shares closing at $252.68 after a slight drop. Over the past month, the stock has edged up 3% and investors continue to monitor its performance amid broader market shifts.

See our latest analysis for Salesforce.

Looking beyond the brief dip this week, Salesforce’s 1-year share price return is still down sharply, and its total shareholder return for the past 12 months sits at -17.2%. This is a stark contrast to its remarkable 3-year total return of nearly 80%, which highlights both the company’s impressive past run and the recent loss of momentum as investor sentiment has shifted.

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With Salesforce’s share price still below analyst targets and solid earnings growth, the question now is whether the current valuation offers a long-term entry point or if future growth is already factored in by the market.

Most Popular Narrative: 24.5% Undervalued

Compared to Salesforce’s latest closing price of $252.68, the most widely followed narrative estimates a fair value nearly $80 higher, fueling a new wave of valuation intrigue.

Salesforce's ongoing integration of AI and agent-based automation (Agentforce, Data Cloud) into its product suite is driving rapid adoption, as seen in 40% of new agentic bookings coming from existing customers expanding usage, along with triple-digit growth in Data Cloud and AI ARR. These trends indicate expanding average contract values and suggest there could be a pathway to structurally accelerated revenue growth.

Read the complete narrative.

Want the real story behind this price target? The calculation depends on bold expansion bets, potential future margin improvements, and an aggressive revenue roadmap most investors haven’t seen. Discover which financial forecasts drive this valuation and what’s fueling market expectations.

Result: Fair Value of $334.68 (UNDERVALUED)

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

However, intensifying competition and data privacy regulations could impact Salesforce’s growth trajectory, potentially reshaping sentiment around its long-term valuation story.

Find out about the key risks to this Salesforce narrative.

Build Your Own Salesforce Narrative

If you want to dig into the numbers yourself or think there’s a different story developing, you can shape your own perspective in just a few 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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