Salesforce stock underperforms S&P, trading 20% below fair value, despite strong past returns.

From Nasdaq: 2024-09-08 22:22:22

Salesforce stock (NYSE: CRM) has underperformed the S&P 500 by 16% YTD, trading at $248, 20% below its fair value of $307. Despite 98% returns in 2023, CRM’s volatile performance contrasts with Trefis’ High Quality Portfolio, less risky and consistently outperforming the S&P. Will macroeconomic uncertainty impact CRM’s future performance?

In Q2 FY 2025, Salesforce surpassed estimates with $9.33 billion in revenues, up 8% YoY. Operating margin increased to 19.1%, net income rose to $1.43 billion. H1 2025 saw a 10% revenue increase to $18.5 billion, net income doubling to $2.96 billion. Q3 revenue estimates range from $9.31-9.36 billion.

Returns comparison for Sep 2024: CRM -6%, S&P 500 16%. Cumulative returns since 2017: CRM 262%, S&P 500 147%. Trefis Reinforced Value Portfolio: 710% total return since 2016. Future valuation estimates for CRM anticipate revenues of $37.79 billion and a target price of $307.



Read more at Nasdaq: Why Salesforce Stock Looks Quite Undervalued