AlphaMadera's AlphaVal page classifies Salesforce, Inc. as a Platform & Compounding FCF business and values it using Two-stage FCF DCF, then compares the result to the current market price to flag CRM as undervalued, fairly valued, or overvalued.

What is Salesforce, Inc.'s fair value?

Fair value for CRM comes from a Two-stage FCF DCF model -- the approach AlphaVal selected for this company's Platform & Compounding FCF classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value CRM?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. CRM was classified as Platform & Compounding FCF and is valued using Two-stage FCF DCF, built from CRM's most recent reported fundamentals.

CRM - Salesforce, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $260.89 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 80% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Undervalued Strong

Trading 54.3% below fair value

Current Price $196.14

Bear Case $275.96 40.7% upside ($275.96 - $196.14) / $196.14 = 40.7% 9% stage 1 growth, 11% discount

Fair Value $428.98 118.7% upside ($428.98 - $196.14) / $196.14 = 118.7% 14% stage 1 growth, 11% discount

Bull Case $596.67 204.2% upside ($596.67 - $196.14) / $196.14 = 204.2% 19% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

14.3%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (14% base case)

Terminal Value % of EV 42%

Implied Market Multiple 14.0x

Market is pricing in (growth) 4.2% vs our 14.3% base

Plain-Language Summary

Using a two-stage FCF DCF with 14% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $428.98 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (97 analysts) $260.89

Analyst Range $215.00 – $325.00

Divergence from AlphaVal 64%

Warnings

⚠ Stock-based employee pay equals 47% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.

ℹ Wall Street's average price target is $260.89 (from 97 analysts). Our estimate is 64% above the consensus -- consider that gap carefully.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions