From Nasdaq: 2025-06-10 08:35:00

Salesforce, Inc. (CRM) is trading at an attractive valuation with a forward P/E ratio of 23.2, lower than the industry average of 32.8. Compared to competitors like Microsoft (MSFT), Oracle (ORCL), and SAP, Salesforce’s stock is cheaper on a P/E basis.

Salesforce’s biggest challenge is slowing sales growth, with revenues rising only 7.7% in the first quarter of fiscal 2026. Analysts expect mid-to-high single-digit growth in the coming years, impacting profit forecasts. Despite this, Salesforce still leads the CRM market.

The slowdown in growth has affected investor sentiment, with Salesforce shares down 18.5% YTD. However, the company’s leadership in AI and strategic acquisitions position it well for long-term growth. While caution is advised, holding onto Salesforce stock seems wise for now.

Salesforce’s core business remains strong in the CRM space, with a focus on AI and expansion beyond CRM through acquisitions. The company’s AI products are expected to drive growth in a market projected to reach $644 billion in 2025. Despite short-term challenges, demand for Salesforce’s solutions remains steady.



Read more at Nasdaq: Salesforce Stock’s Low P/E Valuation: Discount Deal or Growth Trouble?