CRM Looks 22.0% Undervalued on GF Value™ as Dividend Maintains Stability
GuruFocus News
09/03/2026 23:55
On September 03, 2026, Salesforce Inc (NYSE: CRM) announced a quarterly dividend of $0.44 per share, consistent with its previous payout. The dividend carries a forward yield of approximately 0.67%, with the payment scheduled for October 8. Shareholders of record and the ex-dividend date are both set for September 17.
- GF Value™ indicates Salesforce is modestly undervalued by 22.0%, with an intrinsic value of $339.05 compared to the current price of $264.43.
- Salesforce’s GF Score™ stands at an impressive 90 out of 100, reflecting strong overall fundamentals.
- Insider activity shows net selling over the past 12 months, with $27.4 million in purchases versus $56.5 million in sales, while 19 premium gurus currently hold CRM with an equal split of 9 adding and 9 trimming positions recently.
What’s Behind the News?
The announcement of Salesforce’s quarterly dividend at $0.44 per share, unchanged from prior payments, signals the company’s commitment to returning capital to shareholders despite a relatively modest yield of 0.67%. This dividend stability comes amid growing analyst confidence in Salesforce’s business outlook, underscoring the company’s resilience in the competitive technology sector.
Salesforce Inc is a leading provider of enterprise cloud computing solutions, specializing in customer relationship management CRM technology. Its comprehensive Customer 360 platform integrates data across systems to streamline sales, service, marketing, and commerce functions. With a market capitalization of $217.63 billion, Salesforce operates primarily in the technology sector under the software industry, serving a global customer base with a broad suite of cloud-based applications and platforms.
Is CRM Overvalued or Undervalued?
According to GuruFocus’ proprietary GF Value™ metric, Salesforce is modestly undervalued by approximately 22.0%. The GF Value™ estimate of $339.05 contrasts with the current trading price of $264.43, suggesting a meaningful margin of safety for investors considering the stock at current levels. This intrinsic valuation incorporates historical trading multiples, past business growth, and forward-looking performance estimates, providing a comprehensive framework for assessing fair value.
Salesforce’s trailing twelve months (TTM) price-to-earnings (P/E) ratio stands at 24.1x, considerably lower than its five-year median P/E of 70.08x. This compression in valuation multiples further supports the notion that the stock is trading below its historical average relative to earnings, reinforcing the GF Value™ undervaluation signal. Investors seeking more details on the GF Value™ methodology and updates can visit the GF Value™ page for CRM.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is a composite measure designed to evaluate a company’s overall financial health, profitability, growth, valuation, and momentum. Salesforce’s GF Score™ of 90/100 indicates robust fundamentals and a strong position relative to its peers. The score reflects particularly high marks in profitability and growth, while momentum and financial strength show room for improvement.
| 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 sub-ranks lie in growth and profitability, reflecting consistent revenue expansion (11.4% over three years) and solid operating margins (21.52%). However, the moderate financial strength score (5/10) is influenced by an Altman Z-Score in the grey zone (2.88), indicating some financial stress but no immediate bankruptcy risk. Momentum is the weakest area, suggesting recent price action and trading volume have been less dynamic. For more detailed metrics, visit the 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 adding and 9 trimming their positions in recent quarters. This steady guru interest signals a cautious but engaged institutional investor base, reflecting confidence tempered by valuation and market conditions. Insider activity over the past 12 months shows net selling, with insiders offloading $56.5 million worth of shares against $27.4 million in purchases. This net insider selling may warrant attention but is not uncommon in large-cap technology firms with active secondary market participation.
What This Means for Investors
The combination of a 22.0% undervaluation on GF Value™, a high GF Score™ of 90, and strong profitability and growth metrics presents Salesforce as a fundamentally sound company trading below its intrinsic worth. While insider selling and moderate financial strength caution investors to monitor liquidity and capital efficiency, the valuation margin of safety and robust business model support a positive long-term outlook. Dividend stability further enhances the appeal for income-focused shareholders, despite the modest yield. Investors interested in a deeper dive into Salesforce’s fundamentals and valuation can explore the CRM stock page and utilize the GuruFocus Stock Screener for tailored analysis.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 90 out of 100, indicating strong overall financial health, profitability, and growth potential, with some room for improvement in momentum and financial strength.
Based on GF Value™, CRM is modestly undervalued by 22.0%, with an intrinsic value of $339.05 compared to its current price of $264.43.
What is CRM’s P/E ratio compared to historical?
CRM’s trailing twelve months P/E ratio is 24.1x, significantly below its five-year median P/E of 70.08x, suggesting the stock is trading at a discount 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.
