Salesforce Valuation
| CRM Stock | USD 330.01 13.17 3.84% |
At this time, the company appears to be overvalued. Salesforce has a current Real Value of $304.16 per share. The regular price of the company is $330.01. Our model measures the value of Salesforce from inspecting the company fundamentals such as Operating Margin of 0.20 %, return on equity of 0.0973, and Shares Outstanding of 956 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Salesforce's valuation include:
Price Book 5.6251 | Enterprise Value 322.9 B | Enterprise Value Ebitda 30.6081 | Price Sales 8.9971 | Forward PE 30.3951 |
Overvalued
Today
Please note that Salesforce's price fluctuation is very steady at this time. Calculation of the real value of Salesforce is based on 3 months time horizon. Increasing Salesforce's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Salesforce stock is determined by what a typical buyer is willing to pay for full or partial control of Salesforce. Since Salesforce is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Salesforce Stock. However, Salesforce's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 330.01 | Real 304.16 | Target 240.47 | Hype 330.18 | Naive 326.32 |
The intrinsic value of Salesforce's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Salesforce's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Salesforce helps investors to forecast how Salesforce stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Salesforce more accurately as focusing exclusively on Salesforce's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Salesforce's intrinsic value based on its ongoing forecasts of Salesforce's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Salesforce's closest peers.
Salesforce Cash |
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Salesforce Valuation Trend
Knowing Salesforce's actual value is paramount for traders when making sound investment determinations. Using both Salesforce's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Salesforce Revenue by Product
Salesforce Total Value Analysis
Salesforce is currently projected to have company total value of 322.95 B with market capitalization of 328.08 B, debt of 13.56 B, and cash on hands of 7.02 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Salesforce fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
322.95 B | 328.08 B | 13.56 B | 7.02 B |
Salesforce Investor Information
About 82.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 2.34. Salesforce recorded earning per share (EPS) of 5.73. The entity last dividend was issued on the 18th of September 2024. The firm had 4:1 split on the 18th of April 2013. Based on the measurements of operating efficiency obtained from Salesforce's historical financial statements, Salesforce is performing exceptionally good at the present time. It has a great chance to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 10.7 B | 10.2 B |
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Salesforce Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Salesforce has an asset utilization ratio of 34.92 percent. This suggests that the Company is making $0.35 for each dollar of assets. An increasing asset utilization means that Salesforce is more efficient with each dollar of assets it utilizes for everyday operations.Salesforce Ownership Allocation
Salesforce shows a total of 956 Million outstanding shares. The majority of Salesforce outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Salesforce to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Salesforce. Please pay attention to any change in the institutional holdings of Salesforce as this could imply that something significant has changed or is about to change at the company. Please note that on November 11, 2024, Representative Ro Khanna of US Congress acquired $15k to $50k worth of Salesforce's common stock.Salesforce Profitability Analysis
The company reported the last year's revenue of 34.86 B. Total Income to common stockholders was 4.14 B with profit before taxes, overhead, and interest of 22.99 B.Salesforce Past Distributions to stockholders
About Salesforce Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Salesforce. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Salesforce based exclusively on its fundamental and basic technical indicators. By analyzing Salesforce's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Salesforce's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Salesforce. We calculate exposure to Salesforce's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Salesforce's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 26.3 B | 27.6 B | |
| Pretax Profit Margin | 0.14 | 0.15 | |
| Operating Profit Margin | 0.14 | 0.15 | |
| Net Profit Margin | 0.12 | 0.12 | |
| Gross Profit Margin | 0.75 | 0.60 |
A single share of Salesforce represents a small ownership stake in the entity. As a stockholder of Salesforce, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Salesforce Dividends Analysis For Valuation
Please note that Salesforce has scaled down on payment of dividends at this time. At this time, Salesforce's Retained Earnings are very stable compared to the past year. As of the 28th of November 2024, Retained Earnings Total Equity is likely to grow to about 9.2 B, while Price Earnings Ratio is likely to drop 62.89.
There are various types of dividends Salesforce can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Salesforce shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Salesforce directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Salesforce pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Salesforce by the value of the dividends paid out.
Salesforce Growth Indicators
Investing in growth stocks can be very risky. If the company such as Salesforce does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 984 M | |
| Quarterly Earnings Growth Y O Y | 0.148 | |
| Forward Price Earnings | 30.3951 |
Salesforce Current Valuation Indicators
Salesforce's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Salesforce's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Salesforce, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Salesforce's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Salesforce's worth.When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Salesforce. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Salesforce. If investors know Salesforce will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Salesforce listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.148 | Dividend Share 0.8 | Earnings Share 5.73 | Revenue Per Share 37.632 | Quarterly Revenue Growth 0.084 |
The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Salesforce's market value can be influenced by many factors that don't directly affect Salesforce's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine if Salesforce is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.