Salesforce Valuation

CRM Stock  USD 231.94  2.91  1.27%   
At this time, the company appears to be undervalued. Salesforce has a current Real Value of $246.11 per share. The regular price of the company is $231.94. Our model measures the value of Salesforce from inspecting the company fundamentals such as Return On Equity of 0.0934, operating margin of 0.19 %, and Shares Outstanding of 969 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Salesforce's valuation include:
Price Book
4.7864
Enterprise Value
217.7 B
Enterprise Value Ebitda
28.5082
Price Sales
8.1903
Forward PE
30.303
Undervalued
Today
231.94
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.
The fair value of the Salesforce stock is 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.
Historical Market  231.94 Real  246.11 Target  240.47 Hype  229.03 Naive  237.95
The intrinsic value of Salesforce's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Salesforce's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
206.13
Downside
246.11
Real Value
249.21
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:
Earnings
Estimates (0)
LowProjectedHigh
2.182.362.24
Details
Hype
Prediction
LowEstimatedHigh
225.94229.03232.12
Details
Potential
Annual Dividend
LowForecastedHigh
0.130.130.13
Details
51 Analysts
Consensus
LowTarget PriceHigh
218.83240.47266.92
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.

Salesforce Investments

(1.26 Billion)

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 its peers. Market capitalization of Information Technology industry is currently estimated at about 230.99 Billion. Salesforce totals roughly 224.75 Billion in market capitalization claiming about 97% of equities under Information Technology industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Salesforce Total Value Analysis

Salesforce is currently projected to have company total value of 220.47 B with market capitalization of 224.75 B, debt of 13.56 B, and cash on hands of 7.02 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Salesforce fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
220.47 B224.75 B13.56 B7.02 B

Salesforce Investor Information

About 83.0% of the company shares are held by institutions such as insurance companies. The book value of Salesforce was currently reported as 61.47. The company has Price/Earnings To Growth (PEG) ratio of 1.58. Salesforce recorded earning per share (EPS) of 5.57. The entity last dividend was issued on the 13th of March 2024. The firm had 4:1 split on the 18th of April 2013. Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California. Salesforce operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 78634 people. For more info on Salesforce please contact Bret Taylor at 415 901 7000 or go to https://www.salesforce.com.

Salesforce Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Salesforce has an asset utilization ratio of 33.91 percent. This suggests that the Company is making $0.34 for each dollar of assets. An increasing asset utilization means that Salesforce is more efficient with each dollar of assets it utilizes for everyday operations.

Salesforce Ownership Allocation

The majority of Salesforce outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Salesforce to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Salesforce. Please pay attention to any change in the institutional holdings of Salesforce as this could imply that something significant has changed or is about to change at the company. Please note that on June 8, 2024, Representative Josh Gottheimer of US Congress acquired under $15k worth of Salesforce's common stock.

Salesforce Profitability Analysis

The company reported the last year's revenue of 34.86 B. Total Income to common stockholders was 4.14 B with profit before taxes, overhead, and interest of 22.99 B.

Salesforce Past Distributions to stockholders

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.
Last ReportedProjected for Next Year
Gross Profit23.5 B24.7 B
Pretax Profit Margin 0.14  0.15 
Operating Profit Margin 0.17  0.18 
Net Profit Margin 0.12  0.12 
Gross Profit Margin 0.67  0.60 

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's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Salesforce's value is low or high relative to the company's performance and growth projections. Determining the market value of Salesforce can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Salesforce represents a small ownership stake in the entity. As a stockholder of Salesforce, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Salesforce Dividends Analysis For Valuation

Please note that Salesforce has scaled down on payment of dividends at this time. At this time, Salesforce's Retained Earnings are very stable compared to the past year. As of the 15th of June 2024, Retained Earnings Total Equity is likely to grow to about 9.2 B, while Price Earnings Ratio is likely to drop 62.89.
There are various types of dividends Salesforce can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Salesforce shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Salesforce directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Salesforce pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Salesforce by the value of the dividends paid out.

Salesforce Growth Indicators

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 Outstanding984 M
Quarterly Earnings Growth Y O Y6.8
Forward Price Earnings30.303

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.
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.

Additional 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 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 closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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.