GuruFocus News
09/16/2026 18:26
On September 16, 2026, during Salesforce’s (NYSE: CRM) annual conference, CFO Robin Washington highlighted the company’s innovation-driven strategy and shareholder value initiatives, including a massive share repurchase program. This event underscores Salesforce’s ongoing efforts to solidify its leadership in the evolving Agentic enterprise market.
- GF Value™ verdict: Salesforce’s stock is trading at $250.54, which is 27.0% below its GF Value™ of $343.08, indicating modest undervaluation.
- GF Score™: 91/100, reflecting strong overall business quality and execution.
- Key financial signal: Guru 13F data shows 19 gurus currently hold CRM, with an equal split of 9 adding and 9 trimming positions recently; insiders are net sellers over the past 12 months, selling $52.6 million against $26.5 million in purchases.
What’s Behind the News?
At Salesforce’s 2026 annual conference, CFO Robin Washington emphasized innovation as a cornerstone of the company’s strategy to maintain competitive advantage. She revealed that Salesforce has invested $60 billion in share buybacks over the long term, including the largest accelerated share repurchase program initiated earlier this year. This program, expected to complete by October, targets an average purchase price of $182 per share and aims to reduce the share count by over 14%, thereby enhancing shareholder value. Alongside $3 billion in dividends distributed, these capital return initiatives demonstrate Salesforce’s commitment to rewarding shareholders while pursuing ambitious growth targets, including reaching $63 billion in revenue.
Salesforce Inc is a global leader in cloud-based customer relationship management CRM software, serving a broad spectrum of industries with its Customer 360 platform and AI-driven Agentforce solutions. With a market capitalization of $206.19 billion, Salesforce operates in the Technology sector, specifically within the Software industry. The company’s comprehensive suite spans Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Tableau analytics, MuleSoft integration, and Slack collaboration tools, positioning it at the forefront of enterprise digital transformation.
Is CRM Overvalued or Undervalued?
According to GuruFocus’ proprietary GF Value™ metric, Salesforce’s intrinsic value stands at $343.08 per share, while the current market price is $250.54, suggesting the stock is modestly undervalued by approximately 27.0%. This margin of safety indicates that the market may not be fully pricing in Salesforce’s growth prospects and operational strengths, particularly given its strategic share repurchase program that is expected to reduce outstanding shares significantly, thereby enhancing per-share metrics and shareholder returns.
Salesforce’s trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 22.83x, substantially lower than its 5-year median P/E of 70.08x. This compression in valuation multiples could reflect market caution or cyclical factors but also highlights potential upside if Salesforce can sustain its growth trajectory and margin expansion. The forward P/E is currently not available, which may suggest some uncertainty around near-term earnings forecasts. Investors seeking a valuation framework can learn more about GF Value™ and its calculation methodology here.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is a composite measure designed to assess a company’s overall quality by evaluating profitability, growth, financial strength, valuation, and momentum. Salesforce’s impressive GF Score™ of 91 out of 100 signals a high-quality business with strong fundamentals and execution capabilities. Below is a breakdown of its key sub-rankings:
| Metric | Rating (out of 10) |
|---|---|
| GF Score™ | 91 |
| Financial Strength | 5 |
| Profitability | 9 |
| Growth | 10 |
| Valuation | 8 |
| Momentum | 5 |
Salesforce’s strongest areas are growth and profitability, with top decile rankings reflecting robust revenue and earnings expansion (11.4% revenue growth over 3 years and 57.7% earnings growth over 1 year) and expanding operating margins (21.52%). The company’s financial strength is moderate (5/10), partly due to an Altman Z-Score in the grey zone (2.81) and a debt-to-equity ratio of 1.09, indicating some financial leverage. Valuation is attractive relative to historical multiples, while momentum is average, reflecting recent stock price gains tempered by some volatility. For a detailed view, visit Salesforce’s CRM stock page.
What Are Gurus and Insiders Doing with CRM?
GuruFocus tracks 19 premium gurus holding Salesforce shares, with a balanced flow of 9 gurus adding to their positions and 9 trimming them in recent quarters. This mixed activity suggests cautious optimism among top investors, reflecting both confidence in Salesforce’s long-term prospects and sensitivity to valuation or market conditions. Insider activity over the past 12 months shows net selling, with insiders offloading $52.6 million worth of stock against $26.5 million in purchases. In the last three months, there was one insider sale totaling 4,500 shares and no insider buying reported. This insider selling might indicate some profit-taking or diversification but is not excessive given the company’s size and liquidity.
What This Means for Investors
Salesforce’s current valuation, as measured by GF Value™, presents a compelling margin of safety at 27.0% below intrinsic value, supported by a strong GF Score™ of 91 that highlights exceptional growth and profitability. The company’s strategic share repurchase program and dividend distributions underscore management’s commitment to enhancing shareholder value. While financial strength metrics suggest moderate leverage and some caution, the balanced guru ownership and insider selling patterns reflect a nuanced market view rather than outright pessimism. Investors focused on long-term growth and innovation in enterprise software may find Salesforce’s valuation attractive relative to its historical multiples and future potential. For further insights and real-time data, explore the CRM stock page or utilize the GuruFocus Stock Screener to identify similar opportunities.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 91 out of 100, indicating a high-quality company with strong growth, profitability, and solid valuation metrics, though with moderate financial strength.
Based on GF Value™, CRM is modestly undervalued by about 27.0%, trading at $250.54 versus an intrinsic value of $343.08, suggesting a margin of safety for investors.
What is CRM’s P/E ratio compared to historical?
CRM’s trailing twelve-month P/E ratio is 22.83x, significantly lower than its 5-year median P/E of 70.08x, indicating a more attractive valuation relative to its historical earnings multiples.
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.
