Salesforce, Inc.(CRM) - Stock detail

Salesforce, Inc.

US
CRM
Salesforce, Inc.(Listing date: 06/23/2004)

Salesforce was incorporated in Delaware in February 1999. The company is a global leader in customer relationship management technology that brings companies and their customers together. Through the power of data, artificial intelligence, CRM, and trust, the company enables companies of all sizes and industries to connect with customers. The company's AI-powered Customer 360 platform connects customer data across systems, apps, and devices, uniting sales, service, marketing, commerce, and IT teams to create a complete view of the customer.

AI Value AnalystHold
Overall Rating6.3/10
Generated at:2026-03-04 16:36:50
Analysis based on 5 financial reports from Q3 2025 (ended October 31, 2025) and historical periods including 2025-10-31, 2025-07-31, 2025-04-30, 2025-01-31, and 2024-10-31. Data includes comprehensive financial metrics, valuation multiples, and profitability indicators. Price data as of 2026-03-04 close.
Overview

Salesforce is a global leader in CRM technology and cloud-based enterprise software with strong market position, consistent revenue growth, and high profitability margins. The company demonstrates solid financial health with moderate leverage and robust cash generation, though current valuation appears slightly elevated relative to growth expectations.

Valuation
6/10
Profitability
7/10
Financial health
6/10
Operation Advice

No action items

Valuation

P/E TTM
24.27
P/E LYR
32.37
P/B MRQ
3.06
P/S TTM
--
AI Analysis
  • Current price of $193.08 appears slightly undervalued relative to fair value target of ~$210, with elevated forward PE multiples pricing in optimistic future earnings growth but supported by market leadership position.
  • Current Price: $193.08 as of 2026-03-04 close
  • PE (TTM): 24.27 - Above industry median (~20-22) but justified by growth trajectory and margin expansion
  • Forward PE (Dynamic): 32.37 - Elevated, pricing in optimistic future earnings
  • PEG ~1.5 (assuming ~20% growth), suggesting moderate overvaluation
  • PB: 3.06 - Reasonable for high-ROE software firms (vs. sector avg ~4-6)
  • PS (TTM): 6.01 - Premium to peers (avg ~4-5), reflecting market leadership
  • Upside: $220-240 based on 25-28x FY2026 EPS est. ~$8.50-$9.00, considering AI-driven growth
  • Downside: $170-180 support from 20x PE floor if growth slows
  • Fair Value: ~$210 (mid-range PE 26x forward earnings)
Valuation trend

Profitability

ROE TTM
9.10%
Net margin
18.18%
Gross margin
77.70%
Total revenue
30.32B
AI Analysis
  • Strong profitability with consistently high gross margins (76.96%-77.70%) and improving net margins (18.18% in Q3 2025), driven by premium software pricing, scalable cloud infrastructure, and AI adoption benefits.
  • Gross Margin: Consistently high (76.96%-77.70%), reflecting premium software pricing and scalable cloud infrastructure
  • Net Margin: Improved to 18.18% in Q3 2025 (vs. 15.68%-17.08% historically), indicating cost efficiency and operating leverage
  • ROE (TTM): 9.10% - Respectable for capital-intensive growth but below top-tier software peers (often 15%+)
  • ROA (TTM): 5.57% - Efficient asset utilization, though impacted by recent acquisitions
  • Earnings Growth: Q3 2025 net income surged 22.83% YoY, driven by AI adoption and cross-selling (e.g., Slack integration)
  • Sequential volatility in EPS (e.g., $5.77 in Q3 vs. $3.58 in Q2) reflects seasonality and investment phases
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--10.26%2.53%5.60%9.10%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue27.90B37.90B9.83B20.07B30.32B

Financial health

Debt/Asset
36.92%
Current ratio
0.98
Quick ratio
--
Cash ratio
0.98
AI Analysis
  • Solid financial condition with consistent revenue growth (7.62%-9.12% YoY), moderate leverage (36.92% debt-to-equity), and robust cash generation (77.70% in Q3 2025), though current ratio of 0.98 indicates minimal short-term liquidity buffer.
  • Revenue Growth: Consistent YoY growth across quarters (7.62%-9.12% in recent periods), with Q3 2025 revenue of $30.32B (+8.68% YoY), demonstrating stable top-line expansion
  • Current Ratio: 0.98 indicates adequate short-term liquidity but minimal buffer; slightly below ideal levels (1.0+)
  • Debt-to-Equity: 36.92% suggests moderate leverage, manageable for a growth-oriented tech firm
  • Profit Retention: Strong net income growth supports reinvestment capacity
  • Cash Flow: High (77.70% in Q3 2025) implies robust cash generation from operations, funding R&D and acquisitions
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset35.96%40.57%38.48%37.15%36.92%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.111.061.071.120.98