Is It Too Late to Buy Salesforce Inc (CRM) After 3.5% Rally? GF Value Says Undervalued
GuruFocus News
10/22/2026 16:20
On October 22, 2026, Salesforce Inc CRM shares rose 3.5% today, trading at $250.29. The stock has shown a 52-week range from $146.32 to $269.11, highlighting its volatility over the past year.
- GF Value™ verdict: CRM is currently priced at $250.29, which is 29.0% below its GF Value™ estimate of $352.64.
- GF Score™ of 92/100 indicates a strong overall rating, suggesting solid investment potential.
- Most notable signal: Insider activity shows a net selling of $10.8M, with $27.5M bought and $38.4M sold over the past year.
Is CRM Overvalued or Undervalued?
Salesforce Inc CRM is currently trading at $250.29, which is significantly below its GF Value™ estimate of $352.64. This indicates a margin of safety of 29.0%, suggesting that the stock may be undervalued at its current price. The GF Valuation label describes CRM as “modestly undervalued,” which reinforces the notion that there is an opportunity for investors to capitalize on this price discrepancy, albeit with some caveats regarding the overall market conditions and company performance.
GF Value™ is GuruFocus’ proprietary intrinsic-value estimate that takes into account historical trading multiples, past business growth, and future performance estimates. Given this valuation, CRM’s current price presents an attractive opportunity for value-focused investors looking to enter a stock with significant growth potential.
How Does CRM’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 22.8x | 64.3x |
| Forward P/E | 15.7x | – |
The current P/E ratio of 22.8x is 65% lower than its 5-year median of 64.3x, indicating that the stock is trading well below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, further suggesting that CRM may be undervalued and presents a compelling opportunity in the context of its historical performance.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ measures the overall quality of a stock based on several key factors, including profitability, growth, valuation, momentum, and financial strength. With a GF Score™ of 92/100, Salesforce ranks strongly, particularly in growth, which is rated 10/10, signaling robust potential for future expansion. However, its financial strength is a weaker area, rated at 5/10, indicating some concerns that investors may want to consider.
| Metric | Rating |
|---|---|
| GF Score™ | 92/100 |
| Financial Strength | 5/10 |
| Profitability | 8/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 8/10 |
The strong growth score coupled with solid profitability indicates that Salesforce has the potential to perform well in the future, although the financial strength score suggests caution. This mix of strengths and weaknesses should be carefully weighed by potential investors.
What Are Gurus and Insiders Doing with CRM?
As of now, 19 gurus hold shares of CRM, with an equal split of 9 adding and 9 trimming their positions in recent quarters. This mixed activity indicates a diverse sentiment among institutional investors regarding the stock’s future.
Additionally, insider activity shows a net selling of $10.8M, with $27.5M purchased and $38.4M sold over the past 12 months. This trend of net selling might raise some flags for potential investors, suggesting that insiders may have concerns about the stock’s near-term performance even as the broader market sentiment remains positive.
What This Means for Investors
Based on the GF Value™ assessment, Salesforce Inc CRM appears to be undervalued at its current price of $250.29, presenting a notable opportunity for investors who are looking for growth potential. However, the recent insider selling and mixed guru sentiment warrant careful consideration as investors weigh their options. For further details on Salesforce Inc, you can access the Salesforce Inc (CRM) stock page for an in-depth analysis.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 92/100, indicating a strong overall rating and solid investment potential based on various quality metrics.
CRM is currently undervalued, with a GF Value™ estimate suggesting a 29.0% upside from its current trading price.
What is CRM’s P/E ratio?
CRM’s P/E ratio is 22.8x, which is significantly below its 5-year median of 64.3x, indicating it is trading at a lower valuation compared to its historical averages.
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.
