Salesforce Valuation

Stocks . USA . 
Stock . Salesforce
CRM Stock  USD 187.44  0.93  0.50%   
What is the intrinsic value of Salesforce stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Salesforce, is its stock price multiplied by the total number of shares outstanding, calculating Salesforce's enterprise value requires a different approach. It uses Salesforce's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Salesforce Free Cash Flow is very stable at the moment as compared to the past year. Salesforce reported last year Free Cash Flow of 6.31 Billion. As of 23rd of March 2023, Tangible Asset Value is likely to grow to about 43.7 B, while Enterprise Value is likely to drop about 155 B.
Salesforce has a current Real Value of $210.37 per share. The regular price of the company is $187.44. At this time, the company appears to be undervalued. Our model measures the value of Salesforce from inspecting the company fundamentals such as Operating Margin of 0.06 %, return on equity of 0.0036 %, and Shares Outstanding of 1000 M as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Salesforce Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Salesforce's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Salesforce Most Recent Valuation Data

Beta
1.2094
Change Receivables
-995 M
Fiscal Year End
January
Property Plant And Equipment Net
6.6 B
Enterprise Value
136.8 B
Undervalued
Today 187.44
Please note that Salesforce's price fluctuation is very steady at this time. Calculation of the real value of Salesforce is based on 3 months time horizon. Increasing Salesforce's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Salesforce is useful when determining the fair value of the Salesforce stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Salesforce. Since Salesforce is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Salesforce Stock. However, Salesforce's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
167.91
Downside
210.37
Real Value
212.84
Upside
Estimating the potential upside or downside of Salesforce helps investors to forecast how Salesforce stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Salesforce more accurately as focusing exclusively on Salesforce's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
172.76182.59192.41
Details
Hype
Prediction
LowEstimated ValueHigh
167.91189.50191.97
Details
Naive
Forecast
LowNext ValueHigh
183.97186.43188.90
Details
37 Analysts
Consensus
LowTarget PriceHigh
119.00216.24250.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Salesforce's intrinsic value based on its ongoing forecasts of Salesforce's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Salesforce's closest peers. When choosing an evaluation method for Salesforce, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Salesforce Investments

10.97 Billion

Salesforce Valuation Drivers Correlation

Many accounts on the financial statements of Salesforce are highly interrelated and sometimes correlated. Consequently, when conducting Salesforce's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Salesforce
Click cells to compare fundamentals

Salesforce Valuation Trend

Knowing Salesforce's actual value is paramount for traders to make sound investment determinations. Salesforce's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Salesforce's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Salesforce's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Salesforce Market Cap

Salesforce is number one stock in market capitalization category among related companies. Market capitalization of Information Technology industry is currently estimated at about 1.6 Trillion. Salesforce retains roughly 188.68 Billion in market capitalization claiming about 12% of equities under Information Technology industry.
Capitalization  Revenue  Workforce  Valuation  Total debt

Salesforce Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Salesforce's current stock value. Our valuation model uses many indicators to compare Salesforce value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Salesforce competition to find correlations between indicators driving Salesforce's intrinsic value. More Info.
Salesforce is number one stock in beta category among related companies. It is rated third in net asset category among related companies making up about  81,733,917,645  of Net Asset per Beta. As of 23rd of March 2023, Average Assets is likely to grow to about 101.9 B. Also, Tangible Asset Value is likely to grow to about 43.7 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value Salesforce by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Salesforce's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Salesforce's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Salesforce's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Salesforce and how it compares across the competition.

About Salesforce Valuation

The stock valuation mechanism determines the current worth of Salesforce on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Salesforce. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Salesforce based exclusively on its fundamental and basic technical indicators. By analyzing Salesforce's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Salesforce's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Salesforce. We calculate exposure to Salesforce's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Salesforce's related companies.
Fiscal Year End
January
Industry
Software-Application
Concentration
Application Software
Full Time Employees
79.4 K
Service Category
Software
Last ReportedProjected for 2023
Gross Profit23 B24.8 B
Profit Margin 0.007  0.007184 

Salesforce Quarterly Enterprise Value

175.89 Billion

8 Steps to conduct Salesforce's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Salesforce's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Salesforce's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Salesforce's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Salesforce's revenue streams: Identify Salesforce's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Salesforce's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Salesforce's growth potential: Evaluate Salesforce's management, business model, and growth potential.
  • Determine Salesforce's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Salesforce's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Salesforce Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Salesforce does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding997 M
Quarterly Earnings Growth Y O Y-0.553
Forward Price Earnings23.753
Retained Earnings7.6 B
Retained Earnings Total Equity7.6 B

Salesforce Current Valuation Indicators

Valuation refers to the process of determining the present value of Salesforce and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Salesforce we look at many different elements of the entity such as Salesforce's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Salesforce's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Salesforce's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Salesforce, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Salesforce's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Salesforce's worth.
Check out Trending Equities. To learn how to invest in Salesforce Stock please use our How to Invest in Salesforce guide. You can also try Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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.
Altman
Z Score
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Piotroski
F Score
Details
Beneish
M Score
Details
Financial
Analysis
Details
Buy or Sell
Advice
Details
Technical
Analysis
Details
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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