Salesforce, Inc. (CRM) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Technology · Software - Application
Is Salesforce, Inc. a safe investment right now?
Salesforce, Inc.'s Altman Z-Score of 2.79 places it in the gray zone. Our fair value estimate is $206.17 (Watch Zone). Moat rating: 3.3/5 stars.
Could Salesforce, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 2.79 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives CRM's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0792 | 1.2 | -0.1 |
| B · Retained Earnings / Total Assets | RE / TA | 0.1979 | 1.4 | 0.28 |
| C · EBIT / Total Assets | EBIT / TA | 0.0794 | 3.3 | 0.26 |
| D · Market Cap / Total Liabilities | MCap / TL | 3.2953 | 0.6 | 1.98 |
| E · Revenue / Total Assets | Rev / TA | 0.3698 | 1.0 | 0.37 |
How has CRM's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2023 | 3.09 | Safe |
| 2024 | 3.36 | Safe |
| 2025 | 3.37 | Safe |
| 2026 | 2.79 | Gray |
Source: Calculated from CRM's latest 10-K filing on SEC EDGAR.
What is Salesforce, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $9.96 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $7.80 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $13.20 | 52 analysts consensus |
| Trailing P/E | 24.3x | Current market pricing |
| Fair P/E (β discount) | 20.7x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $268.87 (52 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Salesforce, Inc. have a durable competitive advantage?
Moat rating: 3.3/5.
What makes up CRM's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 3/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is CRM's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2023 | 2.7% | — |
| 2024 | 8.7% | Rising |
| 2025 | 11.0% | Rising |
| 2026 | 12.1% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Salesforce, Inc.'s dividend safe?
Can Salesforce, Inc. afford its dividend?
Payout ratio is 21.3%. FCF covers the dividend 0.0x. 3 consecutive years of payments.
Salesforce, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $41.5B | $37.9B | $31.4B | Rising |
| Net Income | $7.5B | $6.2B | $0.2B | Rising |
| Free Cash Flow | $14.4B | $12.4B | $6.3B | Rising |
| Gross Margin | 77.7% | 77.2% | 73.3% | Rising |
Recent events that affect our CRM analysis
CRM earnings report scheduled
Upcoming report. Consensus EPS estimate: $3.12. Revenue estimate: $11.06B. Our current Fair Value: $206.17 — a significant beat or miss could shift this estimate.
CRM analyst consensus: 76% bullish (35 of 46 analysts)
6 Strong Buy, 29 Buy, 10 Hold, 0 Sell, 1 Strong Sell. Consensus target: $268.87 (41.7% upside). Compare with our independent Fair Value: $206.17.
CRM paid $0.4400/share dividend
Dividend Safety Grade: C. Payout ratio: 21.3%.
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CRM beat EPS estimates by 24.9%
Reported EPS: $3.81 vs estimate $3.05. Earnings strength supports our Fair Value of $206.17 (8.6% above current price).
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM paid $0.4160/share dividend
Dividend Safety Grade: C. Payout ratio: 21.3%.
CRM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRM beat EPS estimates by 34.9%
Reported EPS: $2.19 vs estimate $1.62. Earnings strength supports our Fair Value of $206.17 (8.6% above current price).
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM paid $0.4160/share dividend
Dividend Safety Grade: C. Payout ratio: 21.3%.
CRM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRM beat EPS estimates by 4.7%
Reported EPS: $2.91 vs estimate $2.78. Earnings strength supports our Fair Value of $206.17 (8.6% above current price).
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM paid $0.4160/share dividend
Dividend Safety Grade: C. Payout ratio: 21.3%.
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CRM beat EPS estimates by 1.3%
Reported EPS: $2.58 vs estimate $2.55. Earnings strength supports our Fair Value of $206.17 (8.6% above current price).
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM paid $0.4160/share dividend
Dividend Safety Grade: C. Payout ratio: 21.3%.
CRM filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CRM beat EPS estimates by 6.4%
Reported EPS: $2.78 vs estimate $2.61. Earnings strength supports our Fair Value of $206.17 (8.6% above current price).
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CRM filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Salesforce, Inc.
What is Salesforce, Inc. stock price today?
Salesforce, Inc. (CRM) stock price is $189.80 as of the latest market close, traded on the NYSE exchange.
What does Salesforce, Inc. do?
Salesforce, Inc. provides customer relationship management technology services that connect companies and customers together in the United States, Europe, and the Asia Pacific. It offers Agentforce, which enables customers to build, deploy, and manage enterprise-grade, autonomous AI agents at scale, enabling humans and agents to work together; Agentforce Sales, an integrated platform that brings together the power of humans with AI agents to help sales teams for selling, managing, and automating entire sales processes; Agentforce Service, which enables companies in every industry to bring all of their customer, employee, IT, and field service needs onto one integrated AI-powered platform; Data 360, a data engine that gives AI agents their context and serves as the foundation for how customers unify service offerings, making their data actionable for both humans and agents; Informatica, an AI-powered data management platform that enables customers to discover, integrate, govern, and deliver trusted data at scale across hybrid and multi-cloud environments; and Slack, a conversational interface for the agentic enterprise where people and agents work together, connecting knowledge, actions, and data in real time.
What is Salesforce, Inc. market cap?
Salesforce, Inc. has a market capitalization of $175.19B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is CRM in?
Salesforce, Inc. operates in the Technology sector, specifically within the Software - Application industry. It trades on the NYSE under the ticker symbol CRM.
Is CRM stock overvalued or undervalued?
Based on our valuation model, Salesforce, Inc. trades 7.9% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $206.17
- Current Price: $189.80
- Valuation Zone: Watch Zone
What is CRM stock forecast and analyst target price?
Based on 52 Wall Street analysts, the consensus price target for Salesforce, Inc. is $268.87, implying upside of 41.7% from the current price.
- Analyst High Target: $475.00
- Analyst Low Target: $190.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Salesforce, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Salesforce, Inc.:
- Revenue growth (current year est.): 11.1%
- EPS growth (current year est.): 5.4%
- Revenue growth (next year est.): 9.6%
- EPS growth (next year est.): 13.1%
What are Salesforce, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $41.5B | Rising |
| Net Income | $7.5B | Rising |
| Free Cash Flow | $14.4B | Rising |
| Gross Margin | 77.7% | Rising |
What is CRM's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 24.3x
- Forward P/E (next 12 months est.): 12.7x
- FairValueLabs Fair P/E: 20.7x
How volatile is CRM stock?
Salesforce, Inc. has a beta of 1.29, meaning it is somewhat more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Salesforce, Inc. have?
Salesforce, Inc.'s balance sheet shows:
- Total Cash: $9.56B
- Total Debt: $17.71B
- Net Cash Position: $-8.15B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Salesforce, Inc.'s free cash flow?
Salesforce, Inc. generated $16.37B in trailing twelve-month free cash flow (from $15.00B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Salesforce, Inc. pay a dividend, and is it safe?
Yes, Salesforce, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 0.9%
- Payout Ratio: 21.3%
- Consecutive Years Paid: 3
- 5-Year Dividend Growth: 0.0%
- FairValueLabs Safety Grade: C
Is Salesforce, Inc. at risk of going bankrupt?
Salesforce, Inc.'s Altman Z-Score is 2.79, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Salesforce, Inc. have a durable competitive advantage?
Salesforce, Inc. scores 3.3/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 3/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is CRM's return on equity (ROE)?
Salesforce, Inc.'s return on equity is 12.4%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy CRM stock?
CRM shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol CRM
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is CRM a value stock or speculative?
FairValueLabs classifies Salesforce, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Salesforce, Inc.?
The current CEO of Salesforce, Inc. is Mr. Marc R. Benioff.
What is CRM's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $7.80
- Forward EPS (next 12 months est.): $14.93
- Analyst consensus EPS (this year): $13.20
- Analyst consensus EPS (next year): $14.93
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
CRM analysis methodology: How we calculate fair value, Z-Scores, and moat ratings