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Salesforce (CRM) Valuation Check After Recent Share Price Rebound

Simply Wall St · 2d ago

Salesforce stock reaction and recent performance

Salesforce (CRM) has been grinding higher in recent sessions, with the stock up about 5% over the past week and roughly 3% over the past month despite a weaker year to date.

See our latest analysis for Salesforce.

Despite that bounce, the share price return over the year to date is still negative, while the roughly doubled three year total shareholder return suggests longer term holders have meaningfully benefited as investors steadily re rate Salesforce’s growth profile.

If this kind of momentum has you rethinking your tech exposure, it is worth exploring high growth tech and AI stocks to see what other software and AI names might fit your watchlist next.

With shares still down sharply this year but trading at a sizable discount to Wall Street targets, is Salesforce quietly setting up a value entry point, or are investors already paying up for years of future growth?

Most Popular Narrative Narrative: 3% Undervalued

With Salesforce last closing at $260.57 versus a narrative fair value near $268, the current price sits just below what the narrative implies.

Salesforce (NYSE: CRM) delivered another strong quarter, proving it can grow revenue while expanding profitability, something investors have demanded for years. For Q2 fiscal 2026 (ended July 31, 2025), revenue climbed 10% year over year to $10.2 billion, with subscription and support revenue up 11% to $9.7 billion.

Read the complete narrative.

Want to see why this narrative leans toward a higher fair value? It leans heavily on resilient double digit growth, rising margins, and richer future earnings power. Curious which assumptions really move the valuation needle?

Result: Fair Value of $268.76 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing enterprise software budgets and intensifying competition in AI powered CRM could pressure Salesforce’s growth assumptions and reduce its expanding margins.

Find out about the key risks to this Salesforce narrative.

Build Your Own Salesforce Narrative

If you see the story differently, or simply want to dig into the numbers yourself, you can build a complete narrative in minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Salesforce.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.