We’ve recently updated our valuation analysis.

Salesforce Valuation

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

[object Object] Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CRM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5x
Enterprise Value/EBITDA44.1x
PEG Ratio11x

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CRM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average10.8x
ADBE Adobe
9.3x10.3%US$160.0b
INTU Intuit
8.8x12.0%US$116.9b
SNPS Synopsys
11.1x11.1%US$54.7b
CDNS Cadence Design Systems
14.1x10.1%US$48.5b
CRM Salesforce
4.9x13.5%US$147.3b

Price-To-Sales vs Peers: CRM is good value based on its Price-To-Sales Ratio (4.9x) compared to the peer average (10.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
n/an/an/a

Price-To-Sales vs Industry: CRM is expensive based on its Price-To-Sales Ratio (4.9x) compared to the US Software industry average (4.1x)


Price to Sales Ratio vs Fair Ratio

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

CRM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.9x
Fair PS Ratio13.4x

Price-To-Sales vs Fair Ratio: CRM is good value based on its Price-To-Sales Ratio (4.9x) compared to the estimated Fair Price-To-Sales Ratio (13.4x).


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 ($147) is trading below our estimate of fair value ($265.5)

Significantly Below Fair Value: CRM is trading below fair value by more than 20%.


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$147.00
US$203.33
+38.3%
16.9%US$310.00US$150.00n/a46
Nov ’23US$159.82
US$218.45
+36.7%
16.0%US$315.00US$150.00n/a47
Oct ’23US$143.84
US$222.11
+54.4%
17.7%US$385.00US$150.00n/a46
Sep ’23US$153.53
US$227.21
+48.0%
16.9%US$385.00US$150.00n/a47
Aug ’23US$182.98
US$247.22
+35.1%
17.0%US$385.00US$175.00n/a46
Jul ’23US$168.20
US$251.89
+49.8%
17.5%US$385.00US$175.00n/a46
Jun ’23US$176.07
US$254.86
+44.7%
17.7%US$385.00US$175.00n/a48
May ’23US$175.94
US$295.94
+68.2%
13.5%US$385.00US$223.00n/a46
Apr ’23US$212.25
US$298.29
+40.5%
13.4%US$385.00US$225.00n/a46
Mar ’23US$208.89
US$311.00
+48.9%
13.5%US$385.00US$210.00n/a45
Feb ’23US$232.12
US$327.44
+41.1%
9.9%US$385.00US$242.00n/a45
Jan ’23US$254.13
US$331.93
+30.6%
9.1%US$385.00US$242.00n/a45
Dec ’22US$251.50
US$331.40
+31.8%
9.1%US$385.00US$242.00US$147.0045
Nov ’22US$302.76
US$321.26
+6.1%
8.3%US$375.00US$242.00US$159.8245
Oct ’22US$275.26
US$320.04
+16.3%
8.1%US$375.00US$242.00US$143.8444
Sep ’22US$268.32
US$302.93
+12.9%
7.1%US$350.00US$242.00US$153.5343
Aug ’22US$241.93
US$279.83
+15.7%
8.0%US$320.00US$200.00US$182.9842
Jul ’22US$244.98
US$278.74
+13.8%
8.2%US$320.00US$200.00US$168.2042
Jun ’22US$236.20
US$277.48
+17.5%
8.2%US$320.00US$200.00US$176.0742
May ’22US$230.32
US$274.59
+19.2%
9.1%US$320.00US$200.00US$175.9441
Apr ’22US$218.72
US$273.33
+25.0%
9.0%US$320.00US$200.00US$212.2540
Mar ’22US$217.54
US$275.18
+26.5%
8.9%US$320.00US$200.00US$208.8941
Feb ’22US$228.46
US$275.48
+20.6%
9.5%US$320.00US$200.00US$232.1242
Jan ’22US$222.53
US$274.65
+23.4%
10.6%US$320.00US$170.00US$254.1340
Dec ’21US$241.35
US$279.08
+15.6%
11.1%US$325.00US$160.00US$251.5040

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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