CRM Looks 27.9% Undervalued on GF Value™ Amid $2B Listen Labs Talks
GuruFocus News
09/09/2026 14:26
On September 09, 2026, Salesforce Inc (NYSE: CRM) is reportedly in negotiations to acquire Listen Labs, an AI-driven customer research platform, for approximately $2 billion. While discussions are ongoing, no deal has been finalized, and the possibility remains that talks may not result in a transaction.
- GF Value™ indicates CRM is trading at $245.56, about 27.9% below its intrinsic value estimate of $340.76, suggesting modest undervaluation.
- CRM boasts a strong GF Score™ of 91/100, reflecting robust overall business quality and growth potential.
- Insider activity shows net selling over the past 12 months, with insiders selling $55.4 million worth of shares versus $27.4 million bought.
What’s Behind the News?
The reported talks between Salesforce and Listen Labs highlight CRM’s strategic interest in expanding its artificial intelligence capabilities within customer research and experience analytics. Listen Labs specializes in AI-driven insights that can enhance customer engagement and feedback analysis, aligning well with Salesforce’s core Customer 360 platform. An acquisition would potentially strengthen Salesforce’s competitive positioning in the enterprise cloud software market by integrating deeper AI-powered customer intelligence.
Salesforce Inc operates in the Technology sector, specifically within the Software industry, offering a comprehensive suite of cloud-based enterprise solutions. The company’s Customer 360 platform integrates data across sales, service, marketing, and commerce applications, enabling businesses to deliver personalized customer experiences. With a market capitalization of $202.10 billion, Salesforce is a dominant player in enterprise cloud computing and CRM technology.
Is CRM Overvalued or Undervalued?
According to GuruFocus’ proprietary GF Value™ metric, Salesforce shares are modestly undervalued by approximately 27.9%. The current market price of $245.56 is significantly below the GF Value™ of $340.76, implying a meaningful margin of safety for investors who believe in the company’s long-term growth prospects. This undervaluation suggests that the market may not be fully pricing in Salesforce’s earnings growth potential or strategic initiatives such as the Listen Labs acquisition.
Examining valuation multiples, CRM’s trailing twelve-month price-to-earnings (P/E) ratio stands at 22.38x, which is substantially lower than its five-year median P/E of 70.08x. This large gap indicates that the stock is trading at a discount relative to its historical earnings multiple, reinforcing the GF Value™ signal of undervaluation. Investors looking for a combination of growth and value may find this valuation compelling. For more on GF Value™, visit GF Value™.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ aggregates multiple dimensions of a company’s financial health, profitability, growth, valuation, and momentum into a single comprehensive rating. Salesforce’s GF Score™ of 91/100 places it among the top-tier companies in terms of overall quality and performance. The strongest sub-ranks are Growth (10/10) and Profitability (9/10), reflecting Salesforce’s consistent revenue and earnings expansion alongside healthy operating margins. The Valuation rank is also strong at 8/10, supporting the undervaluation thesis. Financial Strength is moderate at 5/10, indicating some leverage and liquidity considerations, while Momentum is middling at 5/10.
| Metric | Rating |
|---|---|
| GF Score™ | 91/100 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 5/10 |
This profile suggests Salesforce is a classic growth company with strong operational performance and attractive valuation metrics, though investors should monitor its financial leverage and market momentum. 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 split of 9 adding and 9 trimming positions in recent quarters. This balanced guru activity indicates a nuanced view among top investors, reflecting both confidence in the company’s prospects and caution amid market dynamics. Insider transactions show net selling over the past year, with insiders selling $55.4 million worth of shares while purchasing $27.4 million. This insider selling trend may warrant attention but is not uncommon for large-cap technology firms with active equity compensation programs.
What This Means for Investors
Salesforce’s current valuation presents a compelling margin of safety, trading nearly 28% below its GF Value™ estimate despite strong growth and profitability metrics. The company’s robust GF Score™ and favorable P/E comparison to historical levels support the thesis that CRM is modestly undervalued. However, the mixed signals from insider selling and moderate financial strength suggest investors should weigh these factors carefully. The ongoing talks to acquire Listen Labs could further enhance Salesforce’s AI capabilities and long-term growth trajectory if completed. For a deeper dive into Salesforce’s fundamentals and valuation, visit the CRM stock page.
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 valuation metrics relative to its peers.
Based on GF Value™, CRM is modestly undervalued by about 27.9%, trading at $245.56 versus an intrinsic value estimate of $340.76.
What is CRM’s P/E ratio compared to historical?
CRM’s trailing P/E ratio is 22.38x, significantly lower than its five-year median P/E of 70.08x, suggesting the stock is trading at a discount relative to 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.
