Salesforce Stock Market Value
| CRM Stock | USD 262.71 6.19 2.41% |
| Symbol | Salesforce |
Salesforce Price To Book Ratio
Is Application Software space 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 6.8 | Dividend Share 0.4 | Earnings Share 5.57 | Revenue Per Share 36.792 | Quarterly Revenue Growth 0.107 |
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 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.
Salesforce 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Salesforce's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Salesforce.
| 06/26/2024 |
| 07/26/2024 |
If you would invest 0.00 in Salesforce on June 26, 2024 and sell it all today you would earn a total of 0.00 from holding Salesforce or generate 0.0% return on investment in Salesforce over 30 days. Salesforce is related to or competes with Workday, and ServiceNow. Salesforce, Inc. provides customer relationship management technology that brings companies and customers together world... More
Salesforce Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Salesforce's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Salesforce upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 23.62 | |||
| Value At Risk | (2.45) | |||
| Potential Upside | 3.88 |
Salesforce Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Salesforce's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Salesforce's standard deviation. In reality, there are many statistical measures that can use Salesforce historical prices to predict the future Salesforce's volatility.| Risk Adjusted Performance | (0) | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.32) | |||
| Treynor Ratio | (0.03) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Salesforce's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Salesforce Backtested Returns
Salesforce owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0071, which indicates the firm had a -0.0071% return per unit of risk over the last 3 months. Salesforce exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Salesforce's Coefficient Of Variation of (6,495), variance of 9.22, and insignificant Risk Adjusted Performance to confirm the risk estimate we provide. The entity has a beta of 1.86, which indicates a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Salesforce will likely underperform. At this point, Salesforce has a negative expected return of -0.0224%. Please make sure to validate Salesforce's maximum drawdown, as well as the relationship between the daily balance of power and period momentum indicator , to decide if Salesforce performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.38 |
Poor reverse predictability
Salesforce has poor reverse predictability. Overlapping area represents the amount of predictability between Salesforce time series from 26th of June 2024 to 11th of July 2024 and 11th of July 2024 to 26th of July 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Salesforce price movement. The serial correlation of -0.38 indicates that just about 38.0% of current Salesforce price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.38 | |
| Spearman Rank Test | 0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 9.74 |
Salesforce lagged returns against current returns
Autocorrelation, which is Salesforce stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Salesforce's stock expected returns. We can calculate the autocorrelation of Salesforce returns to help us make a trade decision. For example, suppose you find that Salesforce has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Salesforce regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Salesforce stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Salesforce stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Salesforce stock over time.
Current vs Lagged Prices |
| Timeline |
Salesforce Lagged Returns
When evaluating Salesforce's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Salesforce stock have on its future price. Salesforce autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Salesforce autocorrelation shows the relationship between Salesforce stock current value and its past values and can show if there is a momentum factor associated with investing in Salesforce.
Regressed Prices |
| Timeline |
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Try AI Portfolio ArchitectAdditional Information and Resources on Investing in Salesforce Stock
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 Salesforce Correlation, Salesforce Volatility and Salesforce Alpha and Beta module to complement your research on Salesforce. To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Salesforce technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.