Salesforce (CRM) has put M&A back in focus with a roughly $5.7b agreement to buy Braze, a move aimed at strengthening its mobile first customer engagement tools across the marketing cloud and the broader CRM platform.
Salesforce shares closed at US$229.17, with the 7 day share price return down 7.45% and the 30 day move down 2.35%, while the 90 day share price return is up 19.99% and the 3 year total shareholder return is up 12.60%.
See how Salesforce fits into the wider software landscape by comparing it with a curated set of 19 high quality undiscovered gems that recent M&A headlines have not yet brought into the spotlight.
Salesforce has just written a US$5.7b Braze cheque after a share price pullback. Is meaningful upside still in front of investors, or was most of it already captured in that 90-day run?
Most Popular Narrative: 10% Undervalued
At a last close of $229.17 against a narrative fair value of about $255, Salesforce is framed as undervalued, with the Braze deal feeding into a broader thesis that focuses on survival and cash generation rather than aggressive growth.
The per-seat licence was only ever the toll booth. The asset is the governed system of record: every customer, every deal, every entitlement, for about 80% of the Fortune 500. And the one thing an autonomous AI agent cannot do is act on a customer without getting into that record first. An agent with no permissions, no governance and no audit trail is not an asset, it is a liability waiting to happen. So the same automation wave that threatens the seat count is exactly what drives every serious enterprise deeper into the data layer Salesforce owns. The meter changes from per-person to per-action. It does not disappear.
See why 41 investors see Salesforce as 10% undervalued.
According to michaelyang, the most followed storyline assigns Salesforce a fair value of roughly $255.9, built on a 9% discount rate and a 19% profit margin assumption. That framework views the current $229.17 share price as pricing in a tougher future than the narrative expects, even after a 1 year total return that declined 11.6% and a 5 year return that declined 24.7%.
That same narrative leans on steady rather than explosive growth. It uses an 8.9% revenue growth rate and a future P/E of 18 to arrive at the fair value range. In other words, the story does not require Salesforce to beat its current 8.97% annual revenue growth or 3.26% net income growth. It only assumes that the existing franchise, with $43.9b of revenue and $9.7b of net income, keeps converting its entrenched position into cash flows that justify a moderate valuation.
For investors reading the Braze acquisition through this lens, the key question is whether the deal reinforces that consumption based, data centric meter described in the quote. The narrative already treats Salesforce as undervalued based on future cash flow potential. Any integration that deepens customer dependence on the broader CRM and marketing platform feeds into the same fair value story rather than creating a new one.
Result: Fair Value of $255.9 (UNDERVALUED)
Still, the narrative can break if Microsoft’s Copilot starts displacing Salesforce inside key accounts, or if AI agents erode seat driven revenue faster than data usage grows.
Find out about the key risks to this Salesforce narrative.
Next Steps
If this mix of opportunity and concern around Salesforce feels familiar, treat it as a prompt to pressure test the numbers yourself and move fast on your own view by weighing the 3 key rewards and 3 important warning signs.
Looking for more investment ideas beyond Salesforce?
You do not need to stop with Salesforce. Use the Simply Wall Street Screener to scan for other opportunities that fit your style before the market does.
- Target stocks that combine quality with a possible valuation gap by reviewing the 36 high quality undervalued stocks.
- Prioritise resilience and capital strength by checking companies in the list of solid balance sheet and fundamentals (24 results).
- Balance potential returns with a smoother ride by focusing on opportunities in the 29 resilient stocks with low risk scores.
New:Manage All Your Stock Portfolios in One Place
We’ve created the ultimate portfolio companion for stock investors, and it’s free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks
Have feedback on this article? Concerned about the content? Get in touch with us directly.Alternatively, email editorial-team@simplywallst.com
Weekly Picks
Ceazaron Buffalo Potash·8 days ago
Under the radar: This $78M stock controls a $1.5B project and it’ll start producing in a few months
Fair Value:CA$1.0637.7% undervalued
119followersusers have followed this narrative
·3commentsusers have commented on this narrative
·23likesusers have liked this narrative
IS
isidrohgon Seagate Technology Holdings·about 2 months ago
Seagate Has Two Engines — Industry Pricing And A Cost Curve Only It Controls
Fair Value:US$1.16k44.4% undervalued
56followersusers have followed this narrative
·3commentsusers have commented on this narrative
·14likesusers have liked this narrative
TR
tripledubon Samsung Electronics·2 months ago
The Largest Shareholder Return Plan in Korean History Landed, and the Stock Fell 29%
John_Ericon American Express·2 months ago
The Mail Company That Became a Bank, Survived a Vat of Seawater, and Just Talked Its Way Into Another Scandal
Fair Value:US$444.1128.1% undervalued
25followersusers have followed this narrative
·1commentusers have commented on this narrative
·3likesusers have liked this narrative
M
mitchell_lawler
The Foxhole
AI companies now take half of every dollar in America’s investment-grade bond market, what does that signal?
What memory stocks can teach us about cycles
Like a wave, cycles, like what we are seeing in memory stocks, can build, change and crash. This makes understanding them an important tool for investors.
91
Oct 30, 2026
About NYSE:CRM
Salesforce
Provides customer relationship management technology services that connect companies and customers together in the United States, Europe, and the Asia Pacific.
Undervalued with proven track record.
Similar Companies
Market Insights
What memory stocks can teach us about cyclesAN
Andrew Legget
AI has flipped the story on cybersecurity stocks, twiceMI
Mitch Lawler
How drones are changing the world of business, not just the battlefieldAN
Andrew Legget
Advertisement
RecentlyUpdated Narratives
Ledoraon NVIDIA·about 3 hours ago
NVIDIA (NVDA): Still Watching the AI Growth Story, but Is the Stock Getting Harder to Value?
Fair Value:US$50559.5% undervalued
12followersusers have followed this narrative
·2commentsusers have commented on this narrative
·0likesusers have liked this narrative
MA
master_o1jmeon Robo.ai·about 6 hours ago
Robo.ai Subsidiary ALIF Holding Presents Integrated Oil Spill Response System Concept
PittTheYoungeron Erste Group Bank·about 8 hours ago
An Austrian industry leader with attractive CEE exposure
Popular Narratives
ANAnalystConsensusTargeton NVIDIA·19 days ago
AI Factory Demand And Physical AI Workloads Will Drive Multi‑Year Upside Potential
Fair Value:US$328.7237.7% undervalued
1676followersusers have followed this narrative
·8commentsusers have commented on this narrative
·37likesusers have liked this narrative
AN
AnalystConsensusTargeton Amazon.com·30 days ago
AI Infrastructure And Cloud Services Will Drive Long-Term Value In This Retail Giant
AnalystConsensusTargeton Microsoft·2 days ago
