Why is Salesforce so Cheap?

There's still room for this software to run

Content Editor 10 June, 2022 | 11:37AM
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Andrew Willis: Salesforce (CRM) is synonymous with sales force automation - but did you know the company still only controls 30% of the highly fragmented market?

There seems to be significant runway left for Salesforce, but we get the concerns around macroeconomic headwinds. The thing is, even after lowering our fair value for the company, we still see a fair value estimate that brings us back to the peaks of last year – reflecting the 45% year-over-year increase in the number of customers spending US$100,000 or more annually.

Senior equity analyst Dan Romanoff also notes the wide moat firm is seeing no weakness in demand and customer retention topping is 92%. Perhaps with the acquisitions of Slack and Tableau, the company is set to become another word for enterprise software…

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Salesforce Inc168.20 USD1.91Rating

About Author

Content Editor

Content Editor  Andrew Willis is Senior Editor for Morningstar Canada