2024-03-23 02:44:25 ET
Summary
- Salesforce Valuation Update: Fair price at $305, slightly below current $306.08, indicating a hold rating with limited upside.
- Growth Plans and Market Position: Targeting $50B revenue by 2026, holds 12.3% market share in $282.20B SaaS market.
- Industry Outlook and Addressable Market: SaaS market expected to grow at 7.33% CAGR, Salesforce's addressable market to reach $952.56B by 2029.
- DCF Model Analysis: Future stock price projected at $562.38, offering 14% annual returns through 2029, closely tracking market performance.
- Comparison with Consensus Estimates and Risks: Potential overvaluation of 17.4% indicated by consensus estimates.
Thesis
In my previous article about Salesforce , Inc, ( CRM ), I assigned the stock a strong buy rating, explaining that even though the stock had rallied by 27% previous to that release, according to my valuation models, the stock still had a decent upside of 18.18%, from the stock price then of $252.6, if it adjusted to my fair price estimate of $299.1. Since then the stock has rallied by 20.18%....
Read the full article on Seeking Alpha
For further details see:
Salesforce: Currently Overvalued And It Requires A Lot To Revert It (Downgrading To Hold)