Salesforce, Inc.

NYSE:CRM Stock Report

Market Cap: US$309.2b

Salesforce Valuation

Is CRM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CRM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CRM ($325.7) is trading below our estimate of fair value ($394.85)

Significantly Below Fair Value: CRM is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CRM?

Key metric: As CRM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CRM. This is calculated by dividing CRM's market cap by their current earnings.
What is CRM's PE Ratio?
PE Ratio55.3x
EarningsUS$5.63b
Market CapUS$309.20b

Price to Earnings Ratio vs Peers

How does CRM's PE Ratio compare to its peers?

The above table shows the PE ratio for CRM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.1x
ADBE Adobe
41x16.5%US$219.9b
INTU Intuit
61.5x16.2%US$180.6b
APP AppLovin
94.9x30.0%US$107.8b
SNPS Synopsys
55x12.7%US$82.0b
CRM Salesforce
55.3x13.9%US$309.2b

Price-To-Earnings vs Peers: CRM is good value based on its Price-To-Earnings Ratio (55.3x) compared to the peer average (63.1x).

Price to Earnings Ratio vs Industry

How does CRM's PE Ratio compare vs other companies in the US Software Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AISP Airship AI Holdings
4.5x-27.8%US$74.21m
GRRR Gorilla Technology Group
2x-67.4%US$45.52m
NISN Nisun International Enterprise Development Group
2.1xn/aUS$35.53m
NXTT Next Technology Holding
0.5xn/aUS$19.19m
CRM 55.3xIndustry Avg. 41.0xNo. of Companies12PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CRM is expensive based on its Price-To-Earnings Ratio (55.3x) compared to the US Software industry average (41x).

Price to Earnings Ratio vs Fair Ratio

What is CRM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CRM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio55.3x
Fair PE Ratio53.8x

Price-To-Earnings vs Fair Ratio: CRM is expensive based on its Price-To-Earnings Ratio (55.3x) compared to the estimated Fair Price-To-Earnings Ratio (53.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CRM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$325.70
US$333.91
+2.5%
13.2%US$425.00US$236.00n/a45
Nov ’25US$294.72
US$314.42
+6.7%
10.8%US$415.00US$236.00n/a44
Oct ’25US$270.87
US$309.68
+14.3%
10.0%US$390.00US$236.00n/a45
Sep ’25US$252.90
US$308.19
+21.9%
10.1%US$390.00US$236.00n/a45
Aug ’25US$253.06
US$300.19
+18.6%
11.9%US$390.00US$230.00n/a45
Jul ’25US$256.21
US$300.19
+17.2%
11.9%US$390.00US$230.00n/a45
Jun ’25US$234.44
US$302.22
+28.9%
12.3%US$390.00US$230.00n/a46
May ’25US$268.69
US$335.80
+25.0%
8.2%US$390.00US$231.00n/a46
Apr ’25US$302.26
US$334.00
+10.5%
8.0%US$390.00US$231.00n/a45
Mar ’25US$316.88
US$326.33
+3.0%
10.1%US$390.00US$231.00n/a46
Feb ’25US$283.80
US$286.60
+1.0%
11.9%US$390.00US$212.00n/a45
Jan ’25US$263.14
US$275.87
+4.8%
11.5%US$350.00US$159.00n/a46
Dec ’24US$260.00
US$270.21
+3.9%
10.9%US$345.00US$159.00n/a46
Nov ’24US$203.91
US$254.53
+24.8%
11.6%US$340.00US$159.00US$294.7246
Oct ’24US$202.78
US$256.27
+26.4%
11.6%US$340.00US$159.00US$270.8747
Sep ’24US$221.53
US$254.64
+14.9%
12.0%US$340.00US$159.00US$252.9046
Aug ’24US$224.27
US$243.36
+8.5%
12.2%US$329.00US$153.00US$253.0646
Jul ’24US$211.26
US$239.51
+13.4%
11.2%US$325.00US$153.00US$256.2145
Jun ’24US$212.90
US$236.67
+11.2%
12.3%US$325.00US$153.00US$234.4445
May ’24US$197.79
US$228.81
+15.7%
16.4%US$384.30US$145.00US$268.6946
Apr ’24US$199.78
US$228.05
+14.2%
16.6%US$384.30US$145.00US$302.2647
Mar ’24US$167.35
US$198.85
+18.8%
23.1%US$384.30US$119.00US$316.8847
Feb ’24US$171.82
US$195.36
+13.7%
24.0%US$384.30US$119.00US$283.8047
Jan ’24US$132.59
US$196.75
+48.4%
17.9%US$310.00US$134.00US$263.1445
Dec ’23US$147.00
US$203.11
+38.2%
16.9%US$310.00US$150.00US$260.0046
Nov ’23US$159.82
US$218.45
+36.7%
16.0%US$315.00US$150.00US$203.9147

Analyst Forecast: Target price is less than 20% higher than the current share price.

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