Salesforce is an American company, a world leader in the development of CRM systems. It uses advanced technologies, including artificial intelligence (AI). The fair value of the company's shares is $336.9, the upside is 22.2%.
Investment thesis
🔼 Strong financial performance. Salesforce presented robust results for the 4Q2024 financial year (which ended on January 31). The company's revenue grew by 11% YoY to $9.29 billion. Adjusted earnings per share (EPS) increased from $1.68 to $2.29. For the entire 2024 fiscal year, Salesforce showed revenue of $34.9 billion (+11% y/y) and earnings per share of $8.22 (+56.9%). In addition, the company initiated a quarterly dividend of $0.40 per share and increased share repurchase program authorization by $10 billion.
🔼 Attractive valuation. Thanks to the recent correction, Salesforce shares can be bought at an attractive price. The company is now valued at 28 annual earnings, which is noticeably below its own 5-year average of 46.63.
🔽 Risks. Salesforce will report results at the end of May, which could bring surprises and cause volatility in the stock. However, over the past 90 days, analysts have revised the company's EPS estimate upward 33 times, which suggests a positive outcome.
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