Salesforce (CRM) is reshaping how it reports revenue by splitting results into Agentforce Apps and Data 360, Platform & Other as it leans into AI agents, data connectivity, and its expanding Google Cloud partnership.

Despite the renewed focus on AI agents and partnerships like Google Cloud and Unisys, the share price return over the past year has been weak, with a 1 year total shareholder return decline of 32.68%. The recent 1 day and 7 day share price returns of 4.13% and 3.18% hint at short term momentum following a year to date share price return decline of 27.52%.

If this AI push has you thinking more broadly about where software and automation might create value next, it could be worth scanning 66 profitable AI stocks that aren't just burning cash for other established AI names with profits to back up the story.

With Salesforce shares down 32.68% on a 1 year total return and trading roughly 47% below one analyst price target estimate, the key question is whether this reset signals undervaluation, or if the market is already discounting future AI growth.

Most Popular Narrative: 17.9% Undervalued

Against Salesforce's last close of $183.82, the most followed narrative anchors on a fair value of $223.99, framing today’s price as a reset rather than a ceiling.

At a 2029 exit multiple of 21x, the value of CRM comes up to $272B or $314 per share. Discounted back at a 7% rate, the present value comes up to $224 per share or $201B.

Want to see what sits behind that $224 figure and 7% discount rate? The narrative focuses on revenue compounding, margin progression, and disciplined cash returns. The key uncertainty is how acquisitions and AI spending affect those numbers over time.

Result: Fair Value of $223.99 (UNDERVALUED)

However, this hinges on AI agents gaining traction and margins holding up, while aggressive niche CRMs or renewed acquisition spending could quickly challenge that fair value story.

Next Steps

If the combination of weak recent returns and confident narratives seems contradictory, do not wait to form an opinion. Begin by considering the positives and reviewing the 4 key rewards

Looking for more investment ideas?

Do not stop with just one company story. Broaden your watchlist now so you are not scrambling to catch up when the next opportunity hits.

• Target dependable income streams by reviewing steady payers in the 13 dividend fortresses that could complement a growth focused portfolio.
• Hunt for quality at attractive prices by scanning the 51 high quality undervalued stocks to see which names currently trade below their assessed worth.
• Prioritise resilience by checking companies in the 70 resilient stocks with low risk scores that pair lower risk scores with more robust fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.