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.
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.
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 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.
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.
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.
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.
Salesforce Target Price ProjectionSalesforce'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.
Salesforce Market Quote on 28th of November 2023
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.
Analyst Consensus On Salesforce Target Price
Salesforce Analyst RatingsSalesforce'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 trendsThe 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.
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.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 efficiencySalesforce 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.
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.
Basic technical analysis of Salesforce StockAs 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.
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.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 managerOur 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.
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Pair Trading with SalesforceOne 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. 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:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Salesforce. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in producer price index.To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Complementary Tools for Salesforce Stock analysis
When running Salesforce's 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 the 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.
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
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
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.
In summary, please note that there is a difference between Salesforce's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Salesforce is a good investment 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.