Salesforce Z Score

CRM Stock

USD 187.44 0.93 0.50%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out Salesforce Piotroski F Score and Salesforce Valuation analysis. To learn how to invest in Salesforce Stock please use our How to Invest in Salesforce guide.

Salesforce Return on Invested Capital is very stable at the moment as compared to the past year. Salesforce reported last year Return on Invested Capital of 0.03. As of 23rd of March 2023, Invested Capital is likely to grow to about 23.3 B, while Capital Expenditure is likely to drop (861 M). Salesforce Net Income Common Stock is very stable at the moment as compared to the past year. Salesforce reported last year Net Income Common Stock of 208 Million. As of 23rd of March 2023, Operating Expenses is likely to grow to about 23.7 B, while Selling General and Administrative Expense is likely to drop about 12.8 B.

Salesforce Z Score Analysis

Salesforce's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

	2022	2023 (projected)
Interest Expense	102.35 M	93.57 M
Gross Profit	22.99 B	24.81 B

Interest Expense Gross Profit

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

Current Salesforce Z Score

12.0

Most of Salesforce's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Salesforce is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

First Factor

1.2 * (

Working Capital

Total Assets )

Second Factor

1.4 * (

Retained Earnings

Total Assets )

Thrid Factor

3.3 * (

EBITAD

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

Total Assets )

Salesforce Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Salesforce is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Salesforce's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Salesforce's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Salesforce's interrelated accounts and indicators.

	Accounts Payable	Total Assets	Current Assets	Cash and Equivalents	Total Debt	Debt Current	Deferred Revenue	Shareholders Equity	Investments Current	Total Liabilities	Current Liabilities	Tax Assets
Accounts Payable		0.98	0.96	0.96	0.97	0.59	0.92	0.99	0.94	0.97	0.96	0.93
Total Assets	0.98		0.99	0.98	0.98	0.59	0.96	1.0	0.96	1.0	0.99	0.92
Current Assets	0.96	0.99		1.0	0.94	0.62	0.97	0.98	0.98	0.98	0.99	0.91
Cash and Equivalents	0.96	0.98	1.0		0.93	0.61	0.96	0.98	0.98	0.97	0.99	0.91
Total Debt	0.97	0.98	0.94	0.93		0.61	0.92	0.98	0.89	0.99	0.96	0.9
Debt Current	0.59	0.59	0.62	0.61	0.61		0.6	0.56	0.54	0.64	0.66	0.52
Deferred Revenue	0.92	0.96	0.97	0.96	0.92	0.6		0.96	0.95	0.96	0.97	0.86
Shareholders Equity	0.99	1.0	0.98	0.98	0.98	0.56	0.96		0.96	0.99	0.98	0.92
Investments Current	0.94	0.96	0.98	0.98	0.89	0.54	0.95	0.96		0.94	0.96	0.9
Total Liabilities	0.97	1.0	0.98	0.97	0.99	0.64	0.96	0.99	0.94		0.99	0.9
Current Liabilities	0.96	0.99	0.99	0.99	0.96	0.66	0.97	0.98	0.96	0.99		0.89
Tax Assets	0.93	0.92	0.91	0.91	0.9	0.52	0.86	0.92	0.9	0.9	0.89

Click cells to compare fundamentals

To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.

Competition

Predict Salesforce

In accordance with the company's disclosures, Salesforce has a Z Score of 12.0. This is 10.78% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The z score for all United States stocks is 37.61% lower than that of the firm.

Salesforce Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Salesforce's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Salesforce could also be used in its relative valuation, which is a method of valuing Salesforce by comparing valuation metrics of similar companies.

Salesforce is currently under evaluation in z score category among related companies.

Salesforce Current Valuation Drivers

We derive many important indicators used in calculating different scores of Salesforce from analyzing Salesforce's financial statements. These drivers represent accounts that assess Salesforce's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Salesforce's important valuation drivers and their relationship over time.

	2018	2019	2020	2021	2022	2023 (projected)
Net Income Per Employee	31.71 K	2.57 K	71.74 K	19.64 K	2.62 K	2.69 K
Revenue Per Employee	379.49 K	348.94 K	374.41 K	360.23 K	394.91 K	351.9 K
Average Assets	26.53 B	42.89 B	59.21 B	84.05 B	94.48 B	101.93 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA	1.97 B	2.84 B	5.41 B	4.83 B	4.45 B	3.54 B
Earnings Before Interest Taxes and Depreciation Amortization USD	1.97 B	2.84 B	5.41 B	4.83 B	4.45 B	3.54 B
Earnings before Tax	983 M	706 M	2.56 B	1.53 B	660 M	684.55 M
Average Equity	13.72 B	25.19 B	38.7 B	53.32 B	59.17 B	63.84 B
Enterprise Value	117.83 B	163.93 B	208.5 B	238.39 B	175.89 B	154.99 B
Free Cash Flow	2.8 B	3.69 B	4.09 B	5.28 B	6.31 B	6.81 B
Invested Capital	4.52 B	10.8 B	16.51 B	22.68 B	21.64 B	23.35 B
Invested Capital Average	4.46 B	10.38 B	14.26 B	20.18 B	21.94 B	23.67 B
Market Capitalization	116.26 B	161.71 B	206.39 B	229.14 B	167.97 B	149.49 B
Tangible Asset Value	15.27 B	23.92 B	34.15 B	35.95 B	40.46 B	43.65 B
Working Capital	(572 M)	1.12 B	4.16 B	1.06 B	504 M	543.79 M

Salesforce ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Salesforce's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Salesforce's managers, analysts, and investors.

Environment Score

Governance Score

Social Score

Salesforce Institutional Holders

Institutional Holdings refers to the ownership stake in Salesforce that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Salesforce's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Salesforce's value.

	Last Transaction	Type	Shares	Value
Vanguard Group Inc	2022-12-31	Common Shares	81.9 M	10.9 B
State Street Corp	2022-12-31	Common Shares	45.1 M	6 B
Wellington Management Group Llp	2022-12-31	Common Shares	11.7 M	1.5 B
Ubs Asset Management Americas Inc	2022-12-31	Common Shares	8.3 M	1.1 B
T Rowe Price Investment Management Inc	2022-12-31	Common Shares	4.7 M	628.7 M
Swiss National Bank	2022-12-31	Common Shares	4.1 M	538.9 M
Sustainable Growth Advisers Lp	2022-12-31	Common Shares	4 M	527.7 M
Wells Fargo Company	2022-12-31	Common Shares	3.3 M	442.1 M
Ubs Group Ag	2022-12-31	Common Shares	3.3 M	438.3 M
Sumitomo Mitsui Trust Holdings Inc	2022-12-31	Common Shares	3.3 M	437.8 M
Royal Bank Of Canada	2022-12-31	Common Shares	3.1 M	407.5 M

Salesforce Fundamentals

	Return On Equity	0.0036 %
	Return On Asset	0.012 %
	Profit Margin	0.0066 %
	Operating Margin	0.06 %
	Current Valuation	136.83 B
	Shares Outstanding	1000 M
	Shares Owned by Insiders	3.25 %
	Shares Owned by Institutions	78.17 %
	Number of Shares Shorted	9.17 M
	Price to Earning	291.69 X
	Price to Book	2.27 X
	Price to Sales	4.31 X
	Revenue	31.35 B
	Gross Profit	22.99 B
	EBITDA	4.45 B
	Net Income	208 M
	Cash and Equivalents	7.02 B
	Cash per Share	13.53 X
	Total Debt	9.42 B
	Debt to Equity	0.24 %
	Current Ratio	1.06 X
	Book Value Per Share	59.49 X
	Cash Flow from Operations	7.11 B
	Short Ratio	1.25 X
	Earnings Per Share	0.20 X
	Price to Earnings To Growth	1.36 X
	Target Price	218.89
	Number of Employees	79.39 K
	Beta	1.21
	Market Capitalization	188.68 B
	Total Asset	98.85 B
	Retained Earnings	2.15 B
	Working Capital	(1.27 B)
	Current Asset	4.35 B
	Current Liabilities	5.62 B
	Z Score	12.0
	Net Asset	98.85 B

About Salesforce Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Salesforce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Salesforce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Salesforce based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California. Salesforce operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 78634 people.

Salesforce Investors Sentiment

The influence of Salesforce's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Salesforce. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to Salesforce's public news can be used to forecast risks associated with investment in Salesforce. The trend in average sentiment can be used to explain how an investor holding Salesforce can time the market purely based on public headlines and social activities around Salesforce. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Salesforce's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Salesforce's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Salesforce's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Salesforce.

Salesforce Implied Volatility

41.47

Salesforce's implied volatility exposes the market's sentiment of Salesforce stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Salesforce's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Salesforce stock will not fluctuate a lot when Salesforce's options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Salesforce in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Salesforce's short interest history, or implied volatility extrapolated from Salesforce options trading.

Pair Trading with Salesforce

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Salesforce position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Salesforce will appreciate offsetting losses from the drop in the long position's value.

Moving together with Salesforce

+	0.87	AI	C3 Ai Inc	Upward Rally	Pair Corr
+	0.88	MIXT	Mix Telemats	Fiscal Quarter End 31st of March 2023	Pair Corr
+	0.94	DSGX	Descartes Systems	Fiscal Quarter End 30th of April 2023	Pair Corr
+	0.65	MNDO	MIND CTI	Fiscal Quarter End 31st of March 2023	Pair Corr
+	0.84	WDAY	Workday	Fiscal Quarter End 30th of April 2023	Pair Corr
+	0.91	FICO	Fair Isaac	Fiscal Quarter End 31st of March 2023	Pair Corr

Moving against Salesforce

-	0.84	XELA	Exela Technologies	Report 24th of March 2023	Pair Corr
-	0.63	EBIX	Ebix Inc	Fiscal Quarter End 31st of March 2023	Pair Corr
-	0.52	NTWK	NetSol Technologies	Fiscal Quarter End 31st of March 2023	Pair Corr
-	0.51	MITK	Mitek Systems	Financial Report 27th of April 2023	Pair Corr

The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Salesforce - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Salesforce to buy it.

The correlation of Salesforce is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Salesforce moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Salesforce can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Check out Salesforce Piotroski F Score and Salesforce Valuation analysis. To learn how to invest in Salesforce Stock please use our How to Invest in Salesforce guide. You can also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Complementary Tools for analysis

When running Salesforce price analysis, check to measure Salesforce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Salesforce is operating at the current time. Most of Salesforce's value examination focuses on studying past and present price action to predict the probability of Salesforce's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Salesforce's price. Additionally, you may evaluate how the addition of Salesforce to your portfolios can decrease your overall portfolio volatility.

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Is Salesforce's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Salesforce. If investors know Salesforce will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Salesforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.55)

Earnings Share

0.2

Revenue Per Share

31.605

Quarterly Revenue Growth

0.144

Return On Assets

0.012

The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Salesforce's market value can be influenced by many factors that don't directly affect Salesforce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine Salesforce value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Salesforce Z Score

Salesforce Z Score Analysis

Current Salesforce Z Score

Salesforce Z Score Driver Correlations

Salesforce Z Score Peer Comparison

Salesforce Current Valuation Drivers

Salesforce ESG Sustainability

Salesforce Institutional Holders

Salesforce Fundamentals

About Salesforce Fundamental Analysis

Salesforce Investors Sentiment

Salesforce Implied Volatility

Pair Trading with Salesforce

Moving together with Salesforce

Moving against Salesforce

Complementary Tools for analysis

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