Salesforce Stock May Be Undervalued by Over 49%

Salesforce's stock has surged by 38.5% over the past month, but despite this significant gain, several valuation checks suggest that the company may still be undervalued.

The Discounted Cash Flow (DCF) intrinsic value and earnings multiple view both lean towards Salesforce being undervalued, even after its recent price increase.

The key risk is that high hopes for AI-driven usage and adoption do not translate into the level or timing of cash generation that the current price implies.

A DCF analysis suggests that Salesforce's intrinsic value is approximately 49.3% above its current share price, indicating that the stock may be undervalued by this amount.