GuruFocus News
09/16/2026 06:30
On September 16, 2026, Salesforce Inc (NYSE: CRM) is facing a significant service disruption affecting its core service functionalities, resulting in customers experiencing delays, intermittent errors, or complete inaccessibility to essential services. The company is actively investigating and testing a fix to restore normal operations.
- GF Value™ verdict: CRM is trading at $255.65, which is approximately 25.5% below its GF Value™ of $343.08, indicating it is modestly undervalued.
- GF Score™: 91/100, reflecting strong overall fundamentals and robust growth potential.
- Insider activity: Over the past 12 months, insiders have been net sellers, with $53.2 million sold versus $26.5 million bought, signaling some caution at the management level.
What’s Behind the News?
Salesforce’s current service disruption is impacting its cloud-based customer relationship management CRM platform, which is critical for many businesses worldwide. Users are experiencing access issues that range from slow response times to complete service outages. Salesforce has acknowledged the problem and is in the process of validating a fix to resolve the disruption. Such outages can temporarily affect customer satisfaction and operational efficiency, especially given Salesforce’s role as a backbone for sales, marketing, service, and commerce operations across industries.
Founded in 1999 and headquartered in San Francisco, Salesforce is the global leader in cloud-based CRM software. Its comprehensive Customer 360 platform integrates Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Tableau analytics, MuleSoft integrations, and Slack collaboration tools. With a market capitalization of $210.40 billion, Salesforce operates within the technology sector, specifically the software industry, serving organizations of all sizes worldwide.
Is CRM Overvalued or Undervalued?
According to GuruFocus’ proprietary GF Value™ metric, Salesforce’s intrinsic value is estimated at $343.08 per share, while the current market price is $255.65. This implies a margin of safety of about 25.5%, suggesting the stock is modestly undervalued. This valuation accounts for historical trading multiples, past growth trends, and future performance expectations, providing investors a data-driven framework to assess CRM’s price relative to its fundamental worth.
Looking at valuation multiples, CRM’s trailing twelve months (TTM) price-to-earnings (P/E) ratio stands at 23.3x, which is significantly lower than its five-year median P/E of 70.08x. This compression in P/E ratio could indicate that the market is pricing in some near-term risks or uncertainties, such as the current service disruption, but also presents a potential opportunity given the company’s strong growth profile. For more details, see 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 91/100 places it among the higher echelon of stocks, signaling robust fundamentals and growth prospects.
| Metric | Rating (out of 10) |
|---|---|
| GF Score™ | 91/100 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 5/10 |
Salesforce’s strongest areas are its growth and profitability ranks, scoring 10/10 and 9/10 respectively, reflecting consistent revenue and earnings expansion alongside improving operating margins. The valuation rank of 8/10 aligns with the GF Value™ indication of modest undervaluation, while financial strength is middling at 5/10, partly due to a moderate debt-to-equity ratio and a grey-zone Altman Z-Score of 2.81. Momentum is moderate, indicating some recent price volatility but no clear directional bias. For a deeper dive, visit 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 9 adding and 9 trimming positions in recent quarters. This balanced guru activity suggests a cautious but engaged institutional interest. Meanwhile, insider transactions reveal net selling over the past 12 months, with insiders offloading $53.2 million worth of shares against $26.5 million purchased. This insider selling could reflect personal portfolio management or concerns about near-term challenges, such as operational disruptions or valuation considerations. The combination of steady guru ownership and insider caution provides a nuanced picture of market sentiment.
What This Means for Investors
Despite the temporary service disruption impacting Salesforce’s platform, the company’s stock presents a compelling value proposition based on its GF Value™ analysis. Trading roughly 25.5% below intrinsic value with a GF Score™ of 91, CRM remains a classic growth stock with strong profitability and robust growth metrics. The relatively low P/E compared to its historical median reinforces the margin of safety, while balanced guru ownership and insider selling highlight a mixed but insightful market perspective. Investors should weigh these factors carefully, considering the operational risks alongside the attractive valuation. For ongoing updates and comprehensive data, explore the CRM stock page and the GuruFocus Stock Screener.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 91 out of 100, indicating strong overall financial health, exceptional growth, and profitability, with moderate financial strength and momentum.
Based on GF Value™, CRM is modestly undervalued by approximately 25.5%, trading at $255.65 versus an intrinsic value estimate of $343.08.
What is CRM’s P/E ratio compared to historical?
CRM’s trailing twelve months P/E ratio is 23.3x, significantly below its five-year median P/E of 70.08x, suggesting the stock is trading at a discount relative to its historical earnings multiple.
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.
