GuruFocus News
09/02/2026 12:02
On September 02, 2026, Salesforce Inc (NYSE: CRM) attracted renewed investor interest following a bullish outlook from BTIG, which highlighted strong business momentum and robust AI ecosystem adoption. The stock currently trades well below its intrinsic value estimate, signaling potential upside.
- GF Value™ indicates CRM is trading at $254.24 versus an intrinsic value of $339.05, implying it is approximately 25.0% undervalued.
- CRM’s GF Score™ stands at an impressive 90 out of 100, reflecting strong overall business quality and growth prospects.
- Insider activity shows net selling over the past 12 months with $27.4 million in purchases versus $57.0 million in sales, while 19 premium gurus hold the stock, evenly split between recent additions and trims.
What’s Behind the News?
BTIG analyst Allan Verkhovski recently upgraded Salesforce’s outlook, citing increased confidence in the company’s business trends and ecosystem improvements. Notably, nine of the top ten AI-native firms reportedly use Salesforce’s platform, underscoring its growing importance in the AI-driven enterprise software space. The company’s Agentforce segment demonstrated remarkable growth, with annual recurring revenue hitting $1.5 billion—a 240% increase year-over-year. BTIG’s Buy rating and $300 price target emphasize expectations for accelerated revenue growth in the latter half of fiscal 2027.
Salesforce Inc operates within the technology sector, specializing in software solutions. The company provides cloud-based customer relationship management CRM technology designed to unify customer data across platforms, enabling sales, service, marketing, and commerce functions. With a market capitalization of $209.24 billion, Salesforce is a dominant player in enterprise cloud computing, offering products like Customer 360, Service Cloud, Marketing Cloud, Commerce Cloud, and MuleSoft for data integration.
Is CRM Overvalued or Undervalued?
According to GuruFocus’ proprietary GF Value™ metric, Salesforce is modestly undervalued by approximately 25.0%, with a GF Value™ of $339.05 compared to its current market price of $254.24. This margin of safety suggests that the stock may be trading below its intrinsic worth based on historical trading multiples, past growth, and future performance estimates. Investors looking for value in a high-quality growth company could find this gap attractive.
Examining <a href="https://bitcomme.com/thyme-care-doubles-valuation-to-2b-with-125m-round/” title=”Thyme Care Doubles Valuation to $2B+ With $125M Round”>valuation multiples, CRM’s trailing twelve months (TTM) price-to-earnings (P/E) ratio stands at 23.18x, which is significantly lower than its five-year median P/E of 70.08x. This substantial contraction in valuation multiples could reflect market concerns or a re-rating opportunity, especially given the company’s strong growth profile and improving margins. For more on GF Value™, visit GF Value™.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is a composite measure that evaluates a company’s overall financial health, profitability, growth, valuation, and momentum to provide a holistic view of its investment quality. Salesforce’s GF Score™ of 90/100 places it among the top tier of companies in terms of business quality and growth potential.
| Metric | Rating |
|---|---|
| GF Score™ | 90/100 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 4/10 |
Salesforce’s strongest areas are growth and profitability, with top decile rankings reflecting consistent revenue expansion and margin improvement. Its valuation rank of 8/10 aligns with the GF Value™ indication of modest undervaluation. However, the company’s financial strength score is middling at 5/10, partly due to a debt-to-equity ratio of 1.09 and an Altman Z-Score in the grey zone at 2.89, signaling some financial stress but no immediate bankruptcy risk. Momentum is relatively weak at 4/10, suggesting recent price action may be less robust despite fundamental strength. For further details, see the CRM stock page.
What Are Gurus and Insiders Doing with CRM?
GuruFocus tracks 19 premium gurus holding Salesforce shares, with an equal number of additions and trims (9 each) in recent quarters. This balanced guru activity indicates a cautious but sustained institutional interest in CRM’s long-term prospects. Meanwhile, insider activity over the past 12 months shows net selling, with insiders offloading $57.0 million worth of shares against $27.4 million in purchases. This divergence between guru accumulation and insider selling may reflect differing perspectives on near-term valuation or liquidity needs but underscores the importance of weighing multiple ownership signals when assessing CRM.
What This Means for Investors
Salesforce’s current valuation, as measured by GF Value™, suggests a meaningful margin of safety of about 25%, supported by a strong GF Score™ of 90 that highlights its robust growth and profitability. While financial strength metrics warrant monitoring, the company’s dominant market position and positive analyst outlook, including BTIG’s recent upgrade, reinforce its status as a classic growth stock with attractive upside potential. The mixed insider and guru ownership trends add nuance but do not detract from the fundamental investment thesis. Investors interested in CRM should consider these factors in conjunction with their risk tolerance and investment horizon. More insights are available on the CRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ of 90/100 reflects its strong overall business quality, driven by top-tier growth and profitability metrics, balanced against moderate financial strength and momentum.
Based on GF Value™, CRM is approximately 25.0% undervalued, trading at $254.24 versus an intrinsic value estimate of $339.05, indicating a potential margin of safety for investors.
What is CRM’s P/E ratio compared to historical?
CRM’s trailing P/E ratio of 23.18x is significantly below its five-year median of 70.08x, suggesting the stock is trading at a valuation discount relative to its historical norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
