Is Salesforce Inc (CRM) a Bargain After 3.1% Drop? GF Value Says Undervalued
GuruFocus News
09/17/2026 16:05
On September 17, 2026, Salesforce Inc CRM shares fell 3.1% today, bringing the current price to $242.85. The stock has experienced a 52-week range of $146.32 to $269.11, highlighting its recent volatility.
- GF Value™ verdict: Currently priced at $242.85, CRM is estimated to be 29.3% undervalued relative to its GF Value™ of $343.34.
- GF Score™ of 91/100 signifies a strong overall assessment of the company’s performance and potential.
- Insider activity shows a net selling of $25.6M over the past 12 months, suggesting cautious sentiment among company executives.
Is CRM Overvalued or Undervalued?
The current market price of Salesforce Inc CRM at $242.85 presents a compelling opportunity as it is 29.3% below its GF Value™ of $343.34. This indicates a significant margin of safety for potential investors, as CRM is classified as “modestly undervalued.” GF Value™ is GuruFocus’ proprietary estimate of a stock’s intrinsic value, derived from historical trading multiples, past business growth, and future performance estimates. With the stock currently trading well below its fair value, it suggests that there may be potential upside for investors willing to take on the risks associated with market fluctuations.
Despite the recent decline in share price, the valuation metrics indicate that there is room for growth. However, investors should exercise caution due to insider selling, which could reflect a lack of confidence in the company’s immediate trajectory. The current valuation aligns with the GF Value™ assessment, presenting an opportunity that warrants further investigation into the company’s fundamentals.
How Does CRM’s Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 22.1x | 70.1x |
| Forward P/E | 14.6x | N/A |
Currently, Salesforce’s P/E ratio of 22.1x is significantly lower than its 5-year median P/E of 70.1x, indicating that the stock is trading at a bargain compared to its historical valuations. This analysis supports the GF Value™ verdict of being undervalued, reinforcing the notion that the market may not be fully recognizing the company’s growth potential.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is a comprehensive assessment of a company’s performance across multiple dimensions, including <a href="https://bitcomme.com/reitmans-canada-limited-reports-second-quarter-financial-results/” title=”Reitmans (Canada) Limited Reports Second Quarter Financial Results”>financial strength, profitability, growth, valuation, and momentum. Salesforce’s GF Score™ of 91/100 highlights its strong performance, particularly in the growth and profitability categories.
| Metric | Rating |
|---|---|
| GF Score™ | 91/100 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 5/10 |
The scores indicate that while Salesforce excels in growth (10/10) and profitability (9/10), it has a moderate financial strength rating (5/10) and momentum (5/10). This mixed score suggests that while the company is positioned for growth, it may face challenges in maintaining strong financial metrics and market momentum moving forward.
What Are Gurus and Insiders Doing with CRM?
Currently, 19 gurus hold positions in CRM, with 9 adding to their holdings and 9 trimming their positions in recent quarters. This indicates a divided sentiment among institutional investors regarding the stock’s future performance.
In terms of insider activity, over the past 12 months, insiders have sold $52.1M worth of shares while purchasing $26.5M, resulting in a net selling of $25.6M. This pattern suggests that insiders may not have complete confidence in the stock’s near-term prospects, which could be a consideration for potential investors.
What This Means for Investors
Based on the current pricing and GF Value™ assessment, Salesforce Inc CRM is deemed modestly undervalued, presenting a potential opportunity for investors. However, the insider selling and mixed guru sentiment highlight the need for careful analysis. Investors may wish to evaluate the company’s fundamentals further before making any decisions.
For more detailed financial information, you can visit the Salesforce IncCRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 91/100, indicating strong performance across various financial metrics and growth potential.
CRM is currently considered undervalued, with a GF Value™ of $343.34 compared to its market price of $242.85.
What is CRM’s P/E ratio?
CRM’s P/E ratio is 22.1x, which is significantly below its 5-year median P/E of 70.1x, highlighting its undervaluation relative to historical levels.
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.
