GuruFocus News
09/17/2026 10:30
On September 17, 2026, Salesforce Inc CRM announced an increase in its revenue guidance, projecting annual revenue to exceed $63 billion by fiscal 2030, surpassing Wall Street’s expectations of $60.66 billion. This positive adjustment follows strong second-quarter results, driven by heightened demand for AI and data products.
- GF Value™ verdict: $343.34 vs Current Price $243.10 = 29.2% undervalued
- GF Score™ 91/100, indicating strong overall performance
- Insider activity shows $1,172,740 in sales over the past three months
What’s Behind the News?
The recent announcement by Salesforce is significant as it reflects the company’s robust performance amid concerns regarding the software development sector’s future. The fears of a “SaaS apocalypse,” where traditional software could be replaced by cheaper AI alternatives, have been alleviated by Salesforce’s strong demand for its AI and data products. CEO Marc Benioff’s remarks at the Dreamforce conference highlighted positive client feedback and the company’s ability to drive transformative changes for businesses.
Salesforce, founded in 1999, is a leader in customer relationship management CRM software, operating within the technology sector and specifically the software industry. With a market capitalization of approximately $200 billion, Salesforce offers a comprehensive suite of cloud-based solutions, including Sales Cloud, Service Cloud, Marketing Cloud, and its innovative Data Cloud. The company has shifted its focus towards disciplined margin expansion alongside growth, positioning itself well in a competitive landscape.
Is CRM Overvalued or Undervalued?
According to GuruFocus, Salesforce’s GF Value™ is calculated at $343.34, indicating that the stock is currently undervalued by approximately 29.2%. This margin of safety suggests that investors may have an opportunity to acquire shares at a price lower than their intrinsic value. The current P/E (TTM) ratio stands at 22.16, significantly lower than its 5-year median P/E of 70.08, further supporting the undervaluation narrative. For more insights, visit the GF Value™ page.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is a comprehensive measure that evaluates a company’s financial strength, profitability, growth potential, valuation, and momentum. Salesforce’s GF Score™ of 91/100 indicates a strong overall performance, with particularly high rankings in profitability and growth. The company’s profitability rank is 9/10, while its growth rank is a perfect 10/10, showcasing its ability to generate earnings and expand effectively. However, its momentum rank is lower at 5/10, suggesting that while the company is performing well, it may not be experiencing the same level of upward price movement as some peers.
| Metric | Rating |
|---|---|
| GF Score™ | 91 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 5/10 |
Salesforce’s strengths lie in its profitability and growth potential, while its financial strength and momentum could be areas for improvement. This balanced profile suggests that while Salesforce is performing well, there are still aspects to monitor closely as the company navigates its growth trajectory. For a detailed analysis, check out the CRM stock page.
What Are Gurus and Insiders Doing with CRM?
Currently, 19 gurus hold shares of Salesforce, with 9 adding to their positions and 9 trimming their holdings in recent quarters. This mixed activity indicates a cautious but engaged interest from institutional investors. Additionally, insider activity shows $1,172,740 in sales over the past three months, suggesting that while there is confidence in the company’s future, some insiders are taking profits at current levels.
What This Means for Investors
Salesforce’s strong GF Value™ of $343.34 compared to its current price of $243.10 suggests that the stock is modestly undervalued, providing a potential margin of safety for investors. With a solid GF Score™ of 91/100 and strong growth prospects, Salesforce appears to be a compelling option for those looking to invest in a leading technology company. For further insights, visit the CRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 91/100, indicating strong overall performance across various financial metrics.
CRM is currently undervalued, with a GF Value™ of $343.34 compared to its current price of $243.10, representing a 29.2% undervaluation.
What is CRM’s P/E ratio compared to historical?
CRM’s current P/E (TTM) ratio is 22.16, significantly lower than its 5-year median P/E of 70.08, indicating a potential undervaluation based on historical performance.
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.
