Salesforce (CRM) is reimagining how it reports revenue by focusing on AI agents, data connectivity, and a growing Google Cloud partnership, splitting results into Agentforce Apps and Data 360, Platform and More.
Check out our latest analysis for Salesforce.
Despite the renewed focus on AI agents and partnerships such as Google Cloud and Unisys, the stock’s price-to-earnings ratio has been low over the past year, with total shareholder return decreasing by 32.68% for the year. The recent 1-day and 7-day stock returns of 4.13% and 3.18% suggest short-term momentum after the stock’s year-to-date stock return has declined -27.52%.
If this AI push has you thinking more broadly about what value software and automation will create next, it might be worth checking out these 66 profitable AI stocks that aren’t just making money and spending cash on other established AI stocks to support this story.
With Salesforce stock down 32.68% in one-year total return and trading about 47% below one analyst’s price target estimate, the key question is whether this reset signals undervaluation, or whether the market is already discounting future AI growth.
Most Popular Story: 17.9% Underrated
Against Salesforce’s last closing price of $183.82, the most followed narrative pegs the fair value at $223.99, viewing today’s price as a reset rather than a ceiling.
At a 21x exit multiple in 2029, CRM would be worth $272 billion, or $314 per share. Discounting at a rate of 7%, the present value is $224 per share, or $201 billion.
Read the whole story.
Want to know what’s behind the $224 number and 7% discount rate? This story focuses on compounding earnings, growing profits, and disciplined cash returns. A key uncertainty is how acquisitions and AI spending will impact these numbers over time.
Result: Fair value $223.99 (undervalued)
Read the full explanation to understand what’s behind the predictions.
However, this will depend on whether the AI agent gains traction and maintains its profit margins, although niche CRMs or aggressive new acquisition spending could quickly put that fair value story into question.
Learn about the key risks to this Salesforce story.
next step
If the combination of recent weak earnings and a confident narrative seems contradictory, form an opinion now. Consider the positives first and check out the four key perks.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
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