Salesforce Stock Alpha and Beta Analysis

CRM Stock  USD 290.17  2.25  0.78%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Salesforce. It also helps investors analyze the systematic and unsystematic risks associated with investing in Salesforce over a specified time horizon. Remember, high Salesforce's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Salesforce's market risk premium analysis include:
Beta
1.27
Alpha
0.0967
Risk
1.68
Sharpe Ratio
0.14
Expected Return
0.24
Please note that although Salesforce alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Salesforce did 0.1  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Salesforce stock's relative risk over its benchmark. Salesforce has a beta of 1.27  . 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 time, Salesforce's Book Value Per Share is very stable compared to the past year. As of the 11th of October 2024, Tangible Book Value Per Share is likely to grow to 6.20, while Enterprise Value Multiple is likely to drop 22.40.

Salesforce Quarterly Cash And Equivalents

6.77 Billion

Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Salesforce Backtesting, Salesforce Valuation, Salesforce Correlation, Salesforce Hype Analysis, Salesforce Volatility, Salesforce History and analyze Salesforce Performance.
To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.

Salesforce Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Salesforce market risk premium is the additional return an investor will receive from holding Salesforce long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Salesforce. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Salesforce's performance over market.
α0.1   β1.27

Salesforce expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Salesforce's Buy-and-hold return. Our buy-and-hold chart shows how Salesforce performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Salesforce Market Price Analysis

Market price analysis indicators help investors to evaluate how Salesforce stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Salesforce shares will generate the highest return on investment. By understating and applying Salesforce stock market price indicators, traders can identify Salesforce position entry and exit signals to maximize returns.

Salesforce Return and Market Media

The median price of Salesforce for the period between Sat, Jul 13, 2024 and Fri, Oct 11, 2024 is 256.12 with a coefficient of variation of 4.93. The daily time series for the period is distributed with a sample standard deviation of 12.78, arithmetic mean of 259.1, and mean deviation of 10.0. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
 
Salesforce dividend paid on 25th of July 2024
07/25/2024
1
Disposition of 1400 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3
08/09/2024
2
Salesforce Data Cloud Momentum Soars with Rising Adoption and New Innovation That Brings Trusted Data to Agentforce
09/17/2024
3
Parker Harris Sells 4,200 Shares of Salesforce, Inc. Stock
09/20/2024
4
Salesforce executive sells over 1.5m in company stock
09/24/2024
5
Is Yext, Inc. the Worst Marketing Stock to Buy
09/27/2024
6
Is Salesforce Inc the Best AI Stock Pick of Brad Gerstner
09/30/2024
7
Disposition of 4200 shares by Parker Harris of Salesforce at 118.04 subject to Rule 16b-3
10/01/2024
8
Disposition of 8427 shares by Brian Millham of Salesforce at 280.0 subject to Rule 16b-3
10/02/2024
9
Is There An Opportunity With Salesforce, Inc.s 31 percent Undervaluation
10/03/2024
 
Salesforce dividend paid on 8th of October 2024
10/08/2024
11
Salesforce CTO Harris Parker sells over 1.2m in company stock
10/09/2024

About Salesforce Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Salesforce or other stocks. Alpha measures the amount that position in Salesforce has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 2023 2024 (projected)
Payables Turnover2.372.153.513.33
Days Of Inventory On Hand75.5477.5469.7963.59

Salesforce Upcoming Company Events

As portrayed in its financial statements, the presentation of Salesforce's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Salesforce's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Salesforce's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Salesforce. Please utilize our Beneish M Score to check the likelihood of Salesforce's management manipulating its earnings.
6th of March 2024
Upcoming Quarterly Report
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29th of May 2024
Next Financial Report
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31st of January 2024
Next Fiscal Quarter End
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6th of March 2024
Next Fiscal Year End
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31st of October 2023
Last Quarter Report
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31st of January 2023
Last Financial Announcement
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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:
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.
A focus of Salesforce technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Salesforce trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...