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A Look At Salesforce (CRM) Valuation After Analyst Upgrades And Agentic AI Optimism

Simply Wall St · 2d ago

Recent analyst upgrades around Salesforce (CRM) and its agentic AI push have helped refocus attention on the stock, as investors weigh rising institutional interest against questions about how quickly new AI and data products scale.

See our latest analysis for Salesforce.

At a recent share price of US$262.90, Salesforce has seen a 9.35% 90 day share price return, while the 1 year total shareholder return of 18.56% decline contrasts with a 3 year total shareholder return of 80.48%. This suggests that longer term momentum remains stronger than the recent setback.

If AI themed software names are on your radar after Salesforce, it could be worth scanning other high growth tech and AI prospects through high growth tech and AI stocks to spot ideas at different stages of their story.

With Salesforce trading at US$262.90 and screens flagging an intrinsic discount of about 31.7%, plus an average analyst target roughly 25% higher than the current price, you have to ask: is there real upside left here, or is the market already baking in years of future growth?

Most Popular Narrative Narrative: 2.2% Undervalued

According to yiannisz, the narrative fair value of US$268.76 sits slightly above Salesforce's last close at US$262.90, which frames this as a mild discount rather than a deep value call.

Salesforce (NYSE: CRM) has spent years convincing enterprises to centralize customer data. That mission is largely complete. The next phase is far more ambitious: turning CRM from a system of record into a system of action.

Read the complete narrative.

Want to see what kind of revenue growth, profit margins, and valuation multiple it takes to back that price tag? The narrative leans on disciplined profitability, sustained cash generation, and a richer earnings profile that treats CRM less like a simple software license and more like core decision infrastructure. Curious how those assumptions feed into the discount rate and support the fair value?

Result: Fair Value of $268.76 (UNDERVALUED)

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

However, this story can wobble if AI adoption slows or if customers push back on pricing, especially as large competitors continue to expand their own AI offerings.

Find out about the key risks to this Salesforce narrative.

Build Your Own Salesforce Narrative

If you read this and think the assumptions feel off, or you would prefer to test the numbers yourself, you can build a tailored Salesforce view in minutes with Do it your way

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

Looking for more investment ideas?

If Salesforce has your attention, do not stop there, use the Simply Wall St Screener to spot other clear, data driven ideas you might otherwise miss.

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.