Is It Too Late to Buy Salesforce Inc (CRM) After 22.6% Rally? GF Value Says Undervalued
GuruFocus News
08/27/2026 16:06
On August 27, 2026, Salesforce Inc CRM shares rose 22.6% to a current price of $252.05, moving significantly within the 52-week range of $146.32 to $269.11.
- GF Value™ verdict: The current price is $252.05, which is 24.5% undervalued compared to the GF Value™ of $333.76.
- GF Score™ of 86/100 indicates a strong overall rating.
- Insider activity shows a net selling of $31.3M over the past 12 months, with insiders buying $27.4M and selling $58.7M.
Is CRM Overvalued or Undervalued?
The current price of Salesforce Inc CRM at $252.05 reveals a significant margin of safety when compared to the GF Value™ of $333.76, indicating that the stock is undervalued by 24.5%. GF Value™, a proprietary intrinsic value estimate by GuruFocus, is derived from historical trading multiples, past business growth, and future performance estimates. This valuation suggests that there is a potential opportunity for investors to capitalize on the current price.
While the stock is deemed to be undervalued according to the GF Value™, it is essential to consider the overall financial health and market conditions. The GF Valuation label categorizes CRM as “Modestly Undervalued,” which reinforces the idea that there is potential upside, but it also indicates caution due to the current financial strength rating of 5/10. Investors should evaluate the risks associated with the net selling by insiders, as it may reflect sentiment regarding the company’s near-term performance.
How Does CRM’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 23.0x | 71.7x |
| Forward P/E | 17.8x | N/A |
The current P/E ratio of 23.0x is significantly lower than its 5-year median P/E of 71.7x, placing the stock 68% below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, supporting the assertion that CRM is undervalued based on its historical trading multiples.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is an overall rating that evaluates a stock based on multiple factors, including financial strength, profitability, growth potential, valuation, and momentum. Salesforce Inc’s GF Score™ of 86/100 indicates a strong investment profile, with its growth rank being the standout at 10/10, reflecting the company’s robust growth potential. However, the valuation rank of 4/10 suggests that the stock may not be as attractive in terms of valuation metrics.
| Metric | Rating |
|---|---|
| GF Score™ | 86/100 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 4/10 |
The overall scores indicate that while Salesforce exhibits strong growth and profitability metrics, its financial strength and valuation are areas of concern. Investors may want to exercise caution given the relatively low ranking in valuation and momentum, despite the strong growth potential the company presents.
What Are Gurus and Insiders Doing with CRM?
Currently, 21 gurus are holding Salesforce Inc’s stock, with 9 increasing their positions while 11 have trimmed their stakes in recent quarters. This mixed sentiment from institutional investors reflects a cautious approach to the stock, given the current market environment.
Regarding insider activity, the past 12 months show a net selling of $31.3M, with insiders buying $27.4M and selling $58.7M. This net selling could indicate a lack of confidence from insiders about the company’s short-term performance, potentially raising flags for prospective investors.
What This Means for Investors
Considering the current valuation metrics, Salesforce Inc CRM appears to be undervalued according to the GF Value™ assessment, which suggests an attractive opportunity for investors. However, the mixed signals from insider selling and the low valuation rank indicate the need for careful evaluation before making any decisions.
For further details, you can visit the Salesforce IncCRM stock page and explore more about the GF Value™ page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 86/100, indicating a strong overall rating based on various financial metrics.
CRM is considered undervalued, with a GF Value™ of $333.76 compared to the current price of $252.05.
What is CRM’s P/E ratio?
CRM’s P/E (TTM) is 23.0x, which is significantly lower than its 5-year median P/E of 71.7x, indicating that the stock is trading below its historical valuation.
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.
