Salesforce (CRM) has just been removed from several Russell growth benchmarks, including the Russell 1000 Growth and Russell Top 50 Index. This change is prompting fresh attention on how index reshuffling might affect the stock.
See our latest analysis for Salesforce.
For context, Salesforce shares trade at US$156.66, with the stock down about 18% on a 30 day share price return and lower by roughly 38% year to date. The 1 year total shareholder return is down about 42% and 5 year total shareholder return is down about 36%. This points to fading momentum despite recent news around index removals, AI partnerships and product traction.
If this kind of reset has you reviewing your watchlist, it could be a good moment to broaden your search with the 61 profitable AI stocks that aren’t just burning cash
With Salesforce now out of key growth indexes and the share price under pressure despite ongoing AI and Agentforce headlines, the real question for investors is simple: is this a reset that leaves upside on the table, or are markets already pricing in future growth?
Most Popular Narrative: 52.5% Undervalued
On the latest numbers, the narrative fair value for Salesforce sits at $330.03 against a last close of $156.66, a wide gap that frames the current debate around the stock.
The “Agentic Upside” is the most compelling part of the bull case. Currently, Data Cloud and AI ARR stands at roughly $1.4 billion (up 114% YoY). If Agentforce continues its trajectory and triples this ARR as projected, it will trigger a revenue re-acceleration.
According to TomW6, this valuation leans heavily on how fast Agentforce and Data Cloud scale, how margins evolve, and what kind of earnings multiple those cash flows might justify. The real drivers sit inside that narrative, not in the recent index reshuffle or short term price swings.
Result: Fair Value of $330.03 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, Salesforce faces clear risks if Agentforce adoption stalls or if AI consumption spending tightens, which could challenge the growth assumptions behind this optimistic narrative.
Find out about the key risks to this Salesforce narrative.
Next Steps
With sentiment clearly split around Salesforce, now is the time to look through the numbers and narrative yourself rather than relying on headlines. To weigh both the concerns and the potential upside in one place, start with the 4 key rewards and 1 important warning sign
Looking for more investment ideas beyond Salesforce?
If Salesforce has you rethinking your portfolio, do not stop here. Use this moment to widen your opportunity set with a few focused stock ideas.
- Kickstart a hunt for potential mispriced opportunities by scanning the 43 high quality undervalued stocks to see which companies might not match their fundamentals.
- Strengthen your focus on resilience by reviewing the 74 resilient stocks with low risk scores and see which businesses currently carry lower overall risk scores.
- Spot potential future standouts early by checking the screener containing 19 high quality undiscovered gems before other investors start paying attention.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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About NYSE:CRM
Salesforce
Provides customer relationship management technology services that connect companies and customers together in the United States, Europe, and the Asia Pacific.
See The Free Research Report
Undervalued with proven track record.
See The Free Research Report
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