Is Salesforce Stock a Good Investment?

Salesforce Investment Advice

CRM

To provide specific investment advice or recommendations on Salesforce stock, we recommend investors consider the following general factors when evaluating Salesforce. This will help you to make an informed decision on whether to include Salesforce in one of your diversified portfolios:

Examine Salesforce's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Salesforce's leadership team and their track record. Good management can help Salesforce navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Application Software space and any emerging trends that could impact Salesforce's business and its evolving consumer preferences.
Compare Salesforce's performance and market position to its competitors. Analyze how Salesforce is positioned in terms of product offerings, innovation, and market share.
Check if Salesforce pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Salesforce's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Salesforce stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Salesforce is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides recommendation on Salesforce to complement and cross-verify current analyst consensus on Salesforce. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Salesforce is not overpriced, please validate all Salesforce fundamentals, including its debt to equity, market capitalization, and the relationship between the ebitda and earnings per share . Given that Salesforce has a price to earning of 291.69 X, we advise you to double-check Salesforce market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	Modest	Details
Volatility	Very steady	Details
Hype Condition	Stale	Details
Current Valuation	Overvalued	Details
Odds of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Salesforce Stock

Researching Salesforce's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are held by institutions such as insurance companies. The book value of Salesforce was currently reported as 59.57. The company has Price/Earnings To Growth (PEG) ratio of 1.36. Salesforce had not issued any dividends in recent years. The entity had 4:1 split on the 18th of April 2013.

To determine if Salesforce is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Salesforce's research are outlined below:

	Salesforce is unlikely to experience financial distress in the next 2 years
	Salesforce has a strong financial position based on the latest SEC filings
	Over 81.0% of the company shares are held by institutions such as insurance companies
	Latest headline from news.google.com: 3 Undervalued Artificial Intelligence Stocks - Morningstar

Salesforce Quarterly Cash and Equivalents

6.77 Billion

Salesforce uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Salesforce. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Salesforce's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	29th of November 2023 Upcoming Quarterly Report	View
	6th of March 2024 Next Financial Report	View
	31st of October 2023 Next Fiscal Quarter End	View
	6th of March 2024 Next Fiscal Year End	View
	31st of July 2023 Last Quarter Report	View
	31st of January 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Salesforce's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Salesforce's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2014-05-20	2014-04-30	0.1	0.11	0.01	10
2014-02-27	2014-01-31	0.06	0.07	0.01	16
2012-08-23	2012-07-31	0.1	0.11	0.01	10
2012-02-23	2012-01-31	0.1	0.11	0.01	10
2011-11-17	2011-10-31	0.08	0.09	0.01	12
2011-08-18	2011-07-31	0.07	0.08	0.01	14
2009-05-21	2009-04-30	0.03	0.04	0.01	33
2009-02-25	2009-01-31	0.02	0.03	0.01	50

Salesforce's SEC filings

Before you invest in Salesforce, make sure you check Salesforce'srecent SEC filings. These artifacts are important regulatory documents required of all public companies to provide to potential investors. Salesforce prospectus issued under the guidelines of the SEC is a legal declaration of facts and statements to ensure that Salesforce investors are not misled. SEC filings are required by law to meet strict transparency standards and other important legal constraints. Although many companies may choose careful wording to disguise some material information, SEC filings make crucial Salesforce's specific information freely available to individual and institutional investors to make a timely investment decision.

	30th of August 2023 Financial Statements and Exhibits. Results of Operations and Financial Condition	View
	9th of February 2023 Unclassified Corporate Event	View

Salesforce Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Salesforce target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Salesforce's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

Number of Opinions	37
Lowered Outlook	0
Raized Outlook	0

Buy

Most Salesforce analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Salesforce stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Salesforce, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Salesforce Target Price Projection

Salesforce's current and average target prices are 224.79 and 248.79, respectively. The current price of Salesforce is the price at which Salesforce is currently trading. On the other hand, Salesforce's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Salesforce Market Quote on 28th of November 2023

Low Price	224.25	Odds
High Price	226.22	Odds

224.79 Target Price

Analyst Consensus On Salesforce Target Price

Low Estimate	153.0	Odds
High Estimate	280.0	Odds
Number of Analysts	34
Standard Deviation	28.185

248.794

Historical

Lowest Forecast 153.0

Target Price 248.79

Highest Forecast 280.0

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Salesforce and the information provided on this page.

Salesforce Analyst Ratings

Salesforce's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Salesforce stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Salesforce's financials, market performance, and future outlook by experienced professionals. Salesforce's historical ratings below, therefore, can serve as a valuable tool for investors.

Salesforce's market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 218.32 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Salesforce's market, we take the total number of its shares issued and multiply it by Salesforce's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

149.49 Billion

Salesforce's profitablity analysis

Salesforce's profitability indicators refer to fundamental financial ratios that showcase Salesforce's ability to generate income relative to its revenue or operating costs. If, let's say, Salesforce is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Salesforce's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Salesforce's profitability requires more research than a typical breakdown of Salesforce's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for 2023
Return on Investment	1.50	1.36
Return on Average Assets	0.002	0.002053
Return on Average Equity	0.004	0.004316
Return on Invested Capital	0.03	0.0308
Return on Sales	0.021	0.0258

The company has Net Profit Margin of 0.05 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.18 %, which entails that for every 100 dollars of revenue, it generated $0.18 of operating income.

Determining Salesforce's profitability involves analyzing its financial statements and using various financial metrics to determine if Salesforce is a good buy. For example, gross profit margin measures Salesforce's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Salesforce's profitability and make more informed investment decisions.

The data published in Salesforce's official financial statements usually reflect Salesforce's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Salesforce. For example, before you start analyzing numbers published by Salesforce accountants, it's critical to develop an understanding of what Salesforce's liquidity, profitability, and earnings quality are in the context of the Software space in which it operates.

Please note, the presentation of Salesforce's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Salesforce's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Salesforce's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Salesforce. Please utilize our Beneish M Score to check the likelihood of Salesforce's management manipulating its earnings.

Evaluate Salesforce's management efficiency

Salesforce has Return on Asset of 0.0288 % which means that on every $100 spent on assets, it made $0.0288 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0267 %, implying that it generated $0.0267 on every 100 dollars invested. Salesforce's management efficiency ratios could be used to measure how well Salesforce manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Salesforce's Return on Average Assets are very stable as compared to the past year. As of the 28th of November 2023, Return on Average Equity is likely to grow to 0.004316, while Return on Investment is likely to drop 1.36. At this time, Salesforce's Net Current Assets as percentage of Total Assets are very stable as compared to the past year. As of the 28th of November 2023, Asset Turnover is likely to grow to 0.38, while Tax Assets are likely to drop about 2.7 B.

	Last Reported	Projected for 2023
Book Value per Share	58.83	63.47
Enterprise Value over EBIT	267.00	288.08
Enterprise Value over EBITDA	39.56	40.60
Price to Book Value	2.88	2.95
Tangible Assets Book Value per Share	40.78	33.88
Enterprise Value	175.9 B	155 B
Tangible Asset Value	40.5 B	43.7 B

The analysis of Salesforce's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Salesforce's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Salesforce Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Beta

1.175

Basic technical analysis of Salesforce Stock

As of the 28th of November, Salesforce has the Coefficient Of Variation of 910.54, risk adjusted performance of 0.0895, and Semi Deviation of 1.14. Salesforce technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Salesforce, which can be compared to its competition. Please validate Salesforce downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Salesforce is priced more or less accurately, providing market reflects its prevalent price of 224.79 per share. Given that Salesforce has jensen alpha of 0.1176, we advise you to double-check Salesforce's current market performance to make sure the company can sustain itself at a future point.

Salesforce's Outstanding Corporate Bonds

Salesforce issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Salesforce uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Salesforce bonds can be classified according to their maturity, which is the date when Salesforce has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	SALESFORCECOM INC Corp Bond US79466LAK08	View
	SALESFORCECOM INC Corp Bond US79466LAJ35	View
	SALESFORCECOM INC Corp Bond US79466LAM63	View
	SALESFORCECOM INC Corp Bond US79466LAL80	View
	SALESFORCE COM INC Corp Bond US79466LAF13	View
	SALESFORCECOM INC Corp Bond US79466LAH78	View

View All Salesforce Corporate Bonds

Understand Salesforce's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Salesforce's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0895
	Market Risk Adjusted Performance	0.143
	Mean Deviation	0.9872
	Semi Deviation	1.14
	Downside Deviation	1.31
	Coefficient Of Variation	910.54
	Standard Deviation	1.32
	Variance	1.73
	Information Ratio	0.0895
	Jensen Alpha	0.1176
	Total Risk Alpha	0.1062
	Sortino Ratio	0.0902
	Treynor Ratio	0.133
	Maximum Drawdown	6.49
	Value At Risk	(2.07)
	Potential Upside	2.13
	Downside Variance	1.7
	Semi Variance	1.31
	Expected Short fall	(1.07)
	Skewness	(0.18)
	Kurtosis	0.1473

	Risk Adjusted Performance	0.0895
	Market Risk Adjusted Performance	0.143
	Mean Deviation	0.9872
	Semi Deviation	1.14
	Downside Deviation	1.31
	Coefficient Of Variation	910.54
	Standard Deviation	1.32
	Variance	1.73
	Information Ratio	0.0895
	Jensen Alpha	0.1176
	Total Risk Alpha	0.1062
	Sortino Ratio	0.0902
	Treynor Ratio	0.133
	Maximum Drawdown	6.49
	Value At Risk	(2.07)
	Potential Upside	2.13
	Downside Variance	1.7
	Semi Variance	1.31
	Expected Short fall	(1.07)
	Skewness	(0.18)
	Kurtosis	0.1473

Salesforce time-series forecasting models is one of many Salesforce's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Salesforce's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Salesforce Stock media impact

Far too much social signal, news, headlines, and media speculation about Salesforce that are available to investors today. That information is available publicly through Salesforce media outlets and privately through word of mouth or via Salesforce internal channels. However, regardless of the origin, that massive amount of Salesforce data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Salesforce news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Salesforce relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Salesforce's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Salesforce alpha.

Salesforce Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Salesforce can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Salesforce Historical Investor Sentiment

Investor biases related to Salesforce's public news can be used to forecast risks associated with an 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 equities 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 and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Salesforce news discussions. The higher the estimate score, the more favorable the investor's outlook on Salesforce.

Salesforce Maximum Pain Price across 2023-12-01 Option Contracts

Salesforce's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Salesforce close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Salesforce's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Salesforce without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run AI Portfolio Architect Now

AI Portfolio Architect

Use AI to generate optimal portfolios and find profitable investment opportunities

All Next

Launch Module

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 Stock

+	0.77	AI	C3 Ai Inc	Earnings Call This Week	Pair Corr
+	0.76	BL	Blackline	Fiscal Quarter End 31st of December 2023	Pair Corr
+	0.74	DT	Dynatrace Holdings LLC	Fiscal Quarter End 31st of December 2023	Pair Corr
+	0.74	DV	DoubleVerify Holdings	Fiscal Quarter End 31st of December 2023	Pair Corr
+	0.61	ML	MoneyLion	Tech Boost	Pair Corr
+	0.62	DOCU	DocuSign	Report 7th of December 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

When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports: