Salesforce Stock Valuation

CRM -  USA Stock  

USD 284.21  4.96  1.72%

What is the enterprise value of Salesforce? 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.
Free Cash Flow is expected to hike to about 4.4 B this year. Enterprise Value is expected to hike to about 225 B this year.
Salesforce has a current Real Value of $324.86 per share. The regular price of the company is $284.21. At this time, the company appears to be undervalued. Our model measures the value of Salesforce from inspecting the company fundamentals such as Shares Outstanding of 922.23 M, return on equity of 11.52 %, and Operating Margin of 4.25 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend acquiring undervalued stocks and dropping overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.

Salesforce Valuation 

 
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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.
Undervalued
Today
284.21
28th of November 2021
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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.
255.79
Downside
324.86
Real Value
326.33
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 (11)
LowProjected EPSHigh
1.602.092.22
Details
Hype
Prediction
LowEstimated ValueHigh
283.17284.64286.11
Details
Naive
Forecast
LowNext ValueHigh
271.14272.61274.08
Details
28 Analysts
Consensus
LowTarget PriceHigh
233.00315.50365.00
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

10.44 BillionShare

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 Software—Application industry is currently estimated at about 288.38 Billion. Salesforce totals roughly 279.43 Billion in market capitalization claiming about 97% of equities listed under Software—Application industry.
Capitalization  Total debt  Valuation  Revenue  Workforce

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 price to book category among related companies fabricating about  6.16  of Price to Book per Beta. Price to Book Value is expected to hike to 6.31 this year. 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.

About Salesforce Valuation

The equity 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 2021
Gross Profit15.8 B17.1 B
Profit Margin 0.19  0.21 
salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. The company was founded 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 59895 people.

Salesforce Quarterly Enterprise Value

221.62 BillionShare

Salesforce Valuation Growth Rates

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.
Quick Ratio1.19
Earnings Quarterly Growth373.70%
Revenue Growth22.60%
Enterprise Value To Ebitda61.91
Earnings Growth354.50%
Enterprise Value To Revenue9.63

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.
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.
Continue to Trending Equities. Note that the Salesforce information on this page should be used as a complementary analysis to other Salesforce's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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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.
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 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.