CRM
Salesforce, Inc.
AI Enterprise Software — GARP
~$184
May 2026 · Mkt Cap ~$180B
Fwd P/E at all-time low; P/CF 10.5× all-time low
✦ STRONG ADD — GARP
Entry zone: $175–190
Cheapest GARP name in AI software at 13.8× fwd P/E (P/CF all-time low 10.5×). Agentforce ARR $800M (+169% YoY); 29,000 deals in 15 months. FY30 revenue target raised to $63B. $50B buyback. Rare combination: value multiple + accelerating AI monetisation. GARP anchor for a portfolio skewed toward high-multiple names.
Fwd P/E
13.8×
Cheapest AI software
PEG
0.87
FY26 Rev Growth
+10%
$41.5B
Agentforce ARR
$800M
+169% YoY
Op Cash Flow
$15B
TTM
P/CF (TTM)
10.5×
All-time low
FY27 Guide
$45.8–46.2B
+10-11%
Next Earnings
~May 28
Q1 FY27 · Est.
Valuation vs Growth
A
Fwd P/E 13.8× — cheapest software name in the cohort by a wide margin. P/CF 10.5× is an all-time low. Agentforce + Data 360 ARR $2.9B (+200%+ YoY) is the embedded growth story the market hasn't repriced. FY30 target raised to $63B. $50B buyback creates structural floor.
Most undervalued AI software name. Market hasn't repriced Agentforce monetisation yet.
Fundamentals vs Hype
A-
29,000 Agentforce deals closed in 15 months, +50% Q/Q. 75% of top 100 deals included Agentforce + Data 360. OCF $15B TTM. Real AI monetisation — measurable ARR, not narrative. Informatica integration adds ~3pts FY27 growth. Risk: headline organic growth 10% is modest.
Grounded — Agentforce monetisation is real, not narrative.
Institutional vs Retail
A
Long-only institutional darling. ETF and index flows steady. Very low retail volatility — not a momentum name. Valuation-disciplined funds accumulating at these levels. Stability characteristic that directly complements PLTR's high-beta profile.
Institutionally accumulated — portfolio stabiliser vs high-multiple holdings.
Verdict
Strong Add. CRM is the value anchor in an AI portfolio skewed toward expensive names. For a portfolio with MU (deeply undervalued chips) and PLTR (most expensive software), CRM provides the middle path: real AI monetisation at a value multiple. The 13.8× fwd P/E with $15B OCF and $50B buyback makes this a durable hold even if Agentforce takes longer to ramp. Best risk-adjusted software pick in the cohort. Accumulate ahead of the Q1 FY27 print (~May 28).
Entry zone: $175–190 — accumulate ahead of Q1 FY27 print (~May 28)
⚠ Key Risks
- 01Organic growth 10% is modest — if Agentforce ARR growth slows, no multiple expansion catalyst
- 02Informatica integration complexity — acquired Feb 2026; margin dilution during integration period
- 03AI agent disintermediation — if autonomous agents reduce CRM software stickiness, addressable market contracts
- 04Competition from Microsoft Copilot and ServiceNow in enterprise AI workflow — head-to-head with NOW on AI agent deployment
- 05Elliott activism risk — past activist pressure led to strategy uncertainty; any recurrence disrupts capital allocation discipline