Salesforce Inc
Exchange: NYSESector: TechnologyIndustry: Software - Application
salesforce.com, inc. is a provider of enterprise cloud computing and social enterprise solutions. The Company provides a customer and collaboration relationship management (CRM), applications through the Internet or cloud. Cloud computing refers to the use of Internet-based computing, storage and connectivity technology to deliver a variety of different services. The Company delivers its service through Internet browsers and mobile devices. It markets its social enterprise applications and platforms to businesses on a subscription basis, primarily through its direct sales efforts and indirectly through partners. In May 2013, salesForce.com Inc acquired Clipboard Inc. In July 2013, salesforce.com, Inc. completed its acquisition of ExactTarget Inc.
Did you know?
Generated $24.2 in free cash flow for every $1 of capital expenditure in FY26.
Current Price
$187.18
+0.50%GoodMoat Value
$491.46
162.6% undervaluedProfile
Valuation (TTM)
Market Cap$175.39B
P/E23.52
EV$190.49B
P/B2.97
Shares Out937.00M
P/Sales4.22
Revenue$41.52B
EV/EBITDA13.92
Salesforce Inc (CRM) Stock Analysis
GoodMoat Analysis
Salesforce appears to be a high-quality business with a potentially durable competitive moat, scoring well on the GoodMoat framework. However, at its current price, the valuation is marginal, offering a limited margin of safety for a value investor.
Read full analysis
Salesforce Inc is a global leader in cloud-based Customer Relationship Management (CRM) software, providing a comprehensive suite of applications for sales, service, marketing, and data analytics. Applying the GoodMoat framework, the business demonstrates a strong moat, likely scoring highly on criteria such as Switching Costs (mission-critical software with high migration costs), Proprietary Data (vast customer data assets), Brand & Culture, and Niche Dominance in enterprise CRM. Its Quality Indicators are also robust, with a solid operating margin of 20.1%, positive free cash flow (8.4% FCF Yield), and a manageable debt load (Debt/Equity of 0.29). This profile suggests it passes the initial Moat & Quality Gate for further analysis. The valuation assessment, however, introduces caution. While the GoodMoat Target of $491.46 suggests significant upside, the current P/E of 22.9x, combined with a revenue growth rate of 12.1%, does not indicate a deep discount. For a value investor, this presents a marginal margin of safety. The stock is a company worth investigating further to understand the drivers behind the target price, but the current market price appears to be pricing in much of its near-term quality and growth, lacking the clear undervaluation typically sought. Analysis based on data as of 2024-05-15.
Market Cap$175.39B
Current Price$187.18
P/E Ratio23.52
Forward P/E—
PEG Ratio1.40
EPS$7.80
Book Value$63.12
P/B Ratio2.97
CRM Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 25.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 9.8B
Revenue
17.1B
FY20
21.3B
FY21
26.5B
FY22
31.4B
FY23
34.9B
FY24
37.9B
FY25
41.5B
FY26
Net Income
126M
FY20
4.1B
FY21
1.4B
FY22
208M
FY23
4.1B
FY24
6.2B
FY25
7.5B
FY26
CRM 52-Week Range
$178.16
$289.72
50-Day MA: $196.20200-Day MA: $236.90
Did you know?
Pays a 0.90% dividend yield.
Salesforce Inc (CRM) Financial Summary
Salesforce Inc (CRM) is a Technology company in the Software - Application industry, listed on NYSE. The stock currently trades at $187.18 with a market capitalization of $175.39B.
Key valuation metrics include a P/E ratio of 23.52, price-to-book ratio of 2.97, and EPS of $7.80. The company reports a profit margin of 18.0% and return on equity of 12.6%.
CRM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $175.39B |
| P/E Ratio | 23.52 |
| EPS | $7.80 |
| P/B Ratio | 2.97 |
| P/S Ratio | 4.22 |
| EV/EBITDA | 13.92 |
| Dividend Yield | 0.90% |
| Profit Margin | 18.0% |
| Return on Equity | 12.6% |
| Debt/Equity | 0.29 |
CRM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $17.10B | $126.00M |
| FY21 | $21.25B | $4.07B |
| FY22 | $26.49B | $1.44B |
| FY23 | $31.35B | $208.00M |
| FY24 | $34.86B | $4.14B |
| FY25 | $37.90B | $6.20B |
| FY26 | $41.52B | $7.46B |
Salesforce Inc (CRM) Valuation
Based on GoodMoat's DCF model, Salesforce Inc has a fair value estimate of $491.46. At the current price of $187.18, the stock appears 61.9% undervalued relative to our intrinsic value estimate.
CRM Quality Indicators
Salesforce Inc maintains a profit margin of 18.0% and an operating margin of 20.1%. Return on equity stands at 12.6%. The current ratio is 0.76. Debt-to-equity ratio is 0.29.
About Salesforce Inc
salesforce.com, inc. is a provider of enterprise cloud computing and social enterprise solutions. The Company provides a customer and collaboration relationship management (CRM), applications through the Internet or cloud. Cloud computing refers to the use of Internet-based computing, storage and connectivity technology to deliver a variety of different services. The Company delivers its service through Internet browsers and mobile devices. It markets its social enterprise applications and platforms to businesses on a subscription basis, primarily through its direct sales efforts and indirectly through partners. In May 2013, salesForce.com Inc acquired Clipboard Inc. In July 2013, salesforce.com, Inc. completed its acquisition of ExactTarget Inc.
CRM Free Cash Flow
Salesforce Inc generated $14.40B in trailing twelve-month free cash flow, representing an FCF yield of 8.21%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CRM Shares Outstanding
Salesforce Inc has 0.94 billion shares outstanding at a share price of $187.18, giving it a market capitalization of $175.39B.
CRM Recent Insider Trades
Recent insider transactions at Salesforce Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| ALBER LAURA | BUY | 491 | $95519.14 |
| Kirk David Blair | BUY | 2,570 | $500178.28 |
| KROES NEELIE | SELL | 3,893 | $929275.84 |