Stock analysis · Bull Rankings model

CRM analysis

Salesforce, Inc. — Software - Application. Scored on the same transparent model behind the daily rankings.

Cloud & SaaS
★
CRM
Salesforce, Inc. · Software - Application
FCF$14.7bA-
Rev+11.0%B
D/E1.24C
P/E24.2xB+
PEG0.86B+
84.0Score
$209.17
1Y Target$243.08Analyst consensus · 52 analysts
5Y Target$306.88Compound horizon
10Y Target$393.57Long-dated conviction
FCF$14.7bTTM
A-
FCF $14.7b — top-quartile, exceptional for any sector
Rev+11.0%TTM YoY
B
Revenue +11.0% — at or above S&P median
D/E1.24
C
D/E 1.24 — more levered than most Technology peers (≈90th pctile)
P/E24.2x
B+
P/E 24.2 — below the Technology median (≈40th pctile)
PEG0.86
B+
PEG 0.86 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Entry · Margin of safety
52-week rangeMid-range
22% off the 12-month high
Quality signals · context only
Gross profitability31% · B+gross profit ÷ total assets (Novy-Marx)
ROIC9.4% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Salesforce’s Agentforce Sales platform is scaling the AI‑augmented sales process, driving an 11% YoY revenue lift that fuels a 23.4% ROE and a $14.7B free‑cash‑flow stream; the Bull Rankings model’s 80.9/100 quality‑growth score (Growth 87, Quality 74) confirms that this high‑margin, high‑growth engine is already priced for continued expansion. The upside hinges on Agentforce’s ability to lock in enterprise customers, keeping churn low and margin pressure minimal, and the company’s aggressive share buyback program is already tightening the equity base. The thesis rests on the sustained 11% revenue growth and the 23.4% ROE that translate into a 22.9 P/E and a 3.8 P/S that are still below the sector average for a company with a $161.8B market cap.
Moat
Agentforce Sales creates a tight integration of human and AI agents that delivers a seamless sales workflow, generating high switching costs for customers who rely on the platform’s end‑to‑end automation. The platform’s AI core is proprietary, and its data‑rich ecosystem fuels continuous learning, making it difficult for competitors to replicate the same level of productivity gains without significant R&D investment. This gives Salesforce a durable moat that protects its 23.4% ROE through pricing power and recurring revenue from long‑term enterprise contracts.
Risk
The primary risk is that Salesforce’s high 22.9 P/E could compress if the 11% revenue growth decelerates, especially as competition from cloud‑native CRM vendors intensifies. A tightening of the debt‑to‑equity ratio beyond 1.24 would erode the 23.4% ROE, and any significant margin squeeze from increased AI development costs could pressure the 18.7% profit margin. A sharp decline in Agentforce adoption would directly hit revenue growth and free cash flow, potentially validating the bearish view.
Horizon
1-3 yr $243.08 (52-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $306.88 at ~8% CAGR — dividend + buyback compounding. 10 yr $393.57 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · CRM
Trend
+2.7 over 45 daily scores
From 81.3 (Jun 22) → 84.0 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.0%
90-day change-0.1%
Forward EPS estimate$15.52

Over the last 90 days, what analysts expect CRM to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Position sizing · CRM
Shares to buy
9
Position size
$1,883
3.8% of portfolio
Stop price
$156.88
25% below $209.17
$ at risk if stopped
$470.63
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Latest CRM developments

Recent headlines from across the financial press · updated daily. Links open the source.

Salesforce, Inc. (CRM): score, valuation & FAQ

Salesforce, Inc. (CRM) is a Software - Application company that scores 84 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are FCF (A-), P/E (B+) and PEG (B+).

Is CRM a good stock to buy?

Bull Rankings scores CRM 84 out of 100 on its quality-growth model, which is a strong reading. That is driven by FCF (A-), P/E (B+) and PEG (B+). A score is a quantitative screen of Salesforce, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does CRM score 84 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). CRM earns its highest marks on FCF (A-), P/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is CRM overvalued or undervalued?

We don't compute a reliable discounted-cash-flow value for CRM — typically because it is not yet consistently profitable or free-cash-flow positive — so its valuation rests on growth and price-to-sales rather than on earnings-based intrinsic value. Judge it on the trajectory of the business, not a single multiple.

What are the main risks of investing in CRM?

The primary risk is that Salesforce’s high 22.9 P/E could compress if the 11% revenue growth decelerates, especially as competition from cloud‑native CRM vendors intensifies. A tightening of the debt‑to‑equity ratio beyond 1.24 would erode the 23.4% ROE, and any significant margin squeeze from increased AI development costs could pressure the 18.7% profit margin. A sharp decline in Agentforce adoption would directly hit revenue growth and free cash flow, potentially validating the bearish view.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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