Salesforce (CRM) Valuation Check After New Agentforce AI Wins With Novartis and U.S. Department of Transportation

Salesforce (CRM) just picked up two heavyweight endorsements for its Agentforce AI platform, with Novartis and the U.S. Department of Transportation both signing on for multi year, organization wide rollouts that highlight growing enterprise adoption momentum.

See our latest analysis for Salesforce.

For all that momentum around Agentforce, Salesforce’s 14.1% 1 month share price return comes against a year to date share price decline of 21.4 percent, although the 3 year total shareholder return of 103.2 percent shows the longer term AI and cloud story is still very much intact.

If this AI driven push has you rethinking your tech exposure, it is a good time to explore high growth tech and AI stocks for other potential winners riding similar trends.

Yet with the stock still down sharply this year despite double digit revenue and profit growth and a nearly 27 percent discount to average analyst targets, is Salesforce quietly undervalued, or is the market already baking in an Agentforce reacceleration?

Most Popular Narrative: 3.3% Undervalued

According to yiannisz, the narrative fair value for Salesforce sits only slightly above the last close, hinting at upside without indicating a deep discount.

Salesforce’s recent focus on margin discipline and shareholder returns has reshaped investor perception. Once criticized for prioritizing growth at any cost, the company now emphasizes cash flow, operating leverage, and capital returns alongside innovation.

Read the complete narrative.

Want to see how disciplined margins, sustained growth, and a rich future earnings multiple all fit together? Curious which assumptions really justify that premium valuation? Dive in.

Result: Fair Value of $268.76 (UNDERVALUED)

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

However, sustained IT budget tightening or slower AI monetization could compress growth and margins, challenging the idea that Salesforce’s AI transition deserves a premium.

Find out about the key risks to this Salesforce narrative.

Build Your Own Salesforce Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a personalized Salesforce thesis from scratch in 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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