Salesforce Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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.

Discounted Cash Flow
Simply Wall St
US$486.77
Fair Value
29.8% undervalued intrinsic discount
46
Number of Analysts


Key Valuation Metric

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

Key metric:

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 Ratio55.1x
EarningsUS$5.94b
Market CapUS$328.80b

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 Average69.6x
ADBE Adobe
34.2x12.8%US$194.1b
INTU Intuit
57.7x17.3%US$169.2b
APP AppLovin
107.9x29.0%US$122.7b
CDNS Cadence Design Systems
78.5x13.7%US$81.7b
CRM Salesforce
55.1x13.8%US$328.8b


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
YXT YXT.COM Group Holding
1.4xn/aUS$99.73m
NISN Nisun International Enterprise Development Group
1.6xn/aUS$29.24m
NXTT Next Technology Holding
0.4xn/aUS$9.56m
ULY Urgent.ly
0.07x-13.0%US$6.61m
No. of Companies12PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies


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 Ratio55.1x
Fair PE Ratio53.8x


Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 46 Analysts
US$395.89
Fair Value
13.7% undervalued intrinsic discount
46
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/31 23:03
End of Day Share Price 2025/01/31 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Salesforce, Inc. is covered by 98 analysts. 51 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harshit GuptaAccountability Research Corporation
Kadambari DaptardarAccountability Research Corporation
Adam ShepherdArete Research Services LLP