Technology / Software - Application

Salesforce, Inc. (CRM)

$200.84
-4.18%
$156.5B
Market Cap
22.1
P/E Ratio
1.14
Beta
0.92%
Dividend Yield
Piotroski 6/9Altman Z 2.6 Gray ZoneBeneish M -2.65 CleanROIC−WACC -2.8%

Quantitative Summary

Deterministic

At 22.1x earnings — a 66% discount to the sector average of 65.0x — CRM is in the lower valuation range. Financial health is average: Piotroski 6/9, Altman Z 2.6. DCF fair value of $350 implies 103% upside from current prices based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of Salesforce present a tension between high-quality earnings generation and inefficient capital allocation. While the DuPont decomposition reveals that returns are driven primarily by robust net margins at 18.0% rather than asset turnover or leverage, the negative ROIC-WACC spread of -3.0% signals that the company is currently destroying value relative to its cost of capital. This inefficiency contrasts with a moderately strong Piotroski F-Score of 6/9 and an Altman Z-Score of 3.0 suggesting manageable distress risk, though the Beneish M-Score of -2.65 indicates low earnings manipulation probability. The divergence between these profitability metrics and the negative Risk-adjusted returns highlights a structural disconnect where top-line growth does not yet translate into efficient capital deployment.

Valuation analysis reveals significant market compression relative to historical norms and sector peers, with the current P/E multiple at 24.0x compared to a sector average of 42.2x. Discounted Cash Flow modeling suggests an implied fair value of $342, representing approximately 83% upside from present levels, contingent on realizing the assumed long-term free cash flow growth rate of 6.7%. This wide valuation gap implies the market may be pricing in prolonged execution challenges or persistent capital inefficiencies rather than sustainable margin expansion, creating a potential mean reversion opportunity if operational levers improve to align ROIC with WACC.

Risk factor analysis introduces notable headwinds despite modest insider accumulation totaling $71,168 over the last 90 days. The stock exhibits substantial exposure to growth and profitability anomalies, evidenced by Fama-French alphas of -55.48% annually alongside negative loadings on both Value (-0.628) and Profitability (-0.607) factors. These factor tilts suggest the asset has underperformed relative to its risk profile during periods where value and quality premiums were rewarded, indicating that future returns will likely depend heavily on a strategic shift toward more efficient capital usage rather than continued revenue scaling alone.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$200.84
Fair Value
$343
Implied Upside
+70.6%
$343IMPLIED FAIR VALUEUNDERVALUEDOVERUNDER
Growth Rate (Y1–5)16%
-10%20%50%
Discount Rate (WACC)12.2%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
5.2%annual FCF growth priced in at $200.84

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 10% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →10.2%12.2%14.2%
2%$412$322$263
3%$459$350$281
4%$522$385$302

Center = base case. Green = >10% upside, Red = >10% downside vs $200.84.

Pre-computed DCF: WACC=12.2%, terminal growth 3%. Fair value $350 (+102.5%). Not investment advice.

Valuation Context

22.1x
CRM P/E
65.0x
Sector Avg
31.4x
5Y Avg P/E
-66%
vs Sector

Currently trading 33% below its 5-year average P/E of 31.4x.

Price Chart with Moving Averages

Loading chart...
SMA 50 SMA 200

Technical Setup

AI Generated

Salesforce, Inc. is currently trading at $179.48, a position that demands careful observation regarding its relationship to the surrounding Simple Moving Average envelope structure. Without specific upper and lower band values provided in this dataset, it remains technically ambiguous whether the current price resides within the mean-reversion zone or has breached critical boundaries defined by historical volatility averages. If the stock is trading near the outer edges of a typical Bollinger Band configuration at this level, statistical probability suggests an increased likelihood of a pullback toward the central moving average line as prices often gravitate back to their long-term means after significant deviations. Conversely, if the price sits comfortably within the middle third of the envelope, it may indicate sustained momentum rather than imminent correction. The sector classification as Technology adds context regarding volatility expectations, yet without knowing the precise width of the SMA bands or recent standard deviation metrics, one cannot definitively characterize the current state as overbought or oversold based solely on this single data point. The relative value proposition hinges entirely on where $179.48 aligns with these dynamic statistical limits; a price significantly distant from the mean implies higher potential for reversal, whereas proximity to the average suggests stability but also limited immediate directional bias. Market participants must weigh this static figure against the fluid nature of moving averages to assess whether the asset is positioned for a bounce or a continuation trend. Ultimately, the technical narrative here relies on inferring the unseen band parameters from market behavior rather than explicit numerical

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

6/9
Piotroski F-Score
Average — mixed operational signals
2.6
Altman Z-Score
Grey Zone — between 1.8 and 3.0 thresholds. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-2.65
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

77.7%
Gross Margin
18.0%
Net Margin
9.4%
ROIC
12.2%
WACC
ROIC − WACC Spread: -2.8%— Negative spread.
+9.6%
Revenue Growth (YoY)
+20.3%
Earnings Growth (YoY)
14.4B
Free Cash Flow
11%
FCF Payout Ratio

✅ Conservative payout — room for dividend increases.

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

18.0%
Net Profit Margin
NI ÷ Revenue
×
0.37x
Asset Turnover
Revenue ÷ Assets
×
1.90x
Equity Multiplier
Assets ÷ Equity
=
12.6%
Return on Equity
✅ ROE driven primarily by strong profit margins — a sign of pricing power.

Balance Sheet Health

0.90x
Debt / Equity
0.76x
Current Ratio
0.2x
Net Debt / EBITDA
9.13%
FCF Yield
12.5B
EBITDA

Insider Activity (Last 90 Days)

Net Insider Flow
+$71,168
Net Buying
2
Buy Transactions
1
Sale Transactions
2026-03-20TALLAPRAGADA SRINIVAS D.Grant27,790 shares
2026-03-20BENIOFF MARC RUSSELLSold 2/3 qtrsGrant45,474 shares
2026-03-20NILES SABASTIANGrant16,084 shares
2026-03-20MILANO MIGUELGrant16,084 shares
2026-03-20HARRIS G PARKERSold 1/3 qtrsGrant27,790 shares

Open-market buys vs sells by company insiders. Source: yfinance.

Earnings Surprise History

Q4
✓ Beat
Est: $2.55
Act: $2.58
+1.3%
Q3
✓ Beat
Est: $2.78
Act: $2.91
+4.7%
Q2
✓ Beat
Est: $2.86
Act: $3.25
+13.6%
Q1
✓ Beat
Est: $3.05
Act: $3.81
+24.9%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.4400
Latest Dividend
$1.66
2025 Total
+4.0%
YoY Growth
Annual Dividends per Share
$1.60
2024
$1.66
2025
$0.44
2026
DateAmountChange
2026-04-09$0.4400+5.8%
2025-12-18$0.41600.0%
2025-09-17$0.41600.0%
2025-06-18$0.41600.0%
2025-04-10$0.4160+4.0%
2024-12-18$0.40000.0%
2024-09-18$0.40000.0%
2024-07-09$0.40000.0%
2024-03-13$0.4000
Stock Splits
2013-04-18: 4:1

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

35.6%
Annual Volatility
-1.20
Sharpe (1Y)
-43.1%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

0.81
Market β
Mkt-RF
+0.225
Size (SMB)
Small-cap tilt
-0.628
Value (HML)
Growth tilt
-0.607
Profit (RMW)
Weak
+0.461
Invest (CMA)
Conservative
Alpha (annual): -55.48%
R²: 39.5%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

12.3
Forward P/E
0.96
PEG Ratio
4.57
Price/Book
14M
Avg Volume
$276.80
52W High
$163.52
52W Low
33%
52W Range Position

Smart Money Flow

Institutional 13F filings from top hedge funds. Positions updated quarterly from SEC EDGAR.

FundQuarterShares Change% ChangeAction
Citadel Advisors2026-Q1+510,400+96.0%Increased
Renaissance Technologies2026-Q1+594,768+11.1%Increased
Bridgewater Associates2026-Q1-370,750-84.4%Decreased
Two Sigma Investments2026-Q1+6,000+21.7%Increased
DE Shaw2026-Q1-156,400-88.7%Decreased
Millennium Management2026-Q1-138,420-66.3%Decreased
Point72 Asset Mgmt2026-Q1-617,900-98.7%Decreased
Soros Fund Management2026-Q1+215,000+100.0%New Position
Bridgewater Associates2025-Q4-65,025-12.9%Decreased
Point72 Asset Mgmt2025-Q4+500,800+400.6%Increased
DE Shaw2025-Q4+84,000+90.9%Increased
Renaissance Technologies2025-Q4-636,399-10.6%Decreased

Source: SEC 13F-HR filings. 13F data is delayed ~45 days after quarter end. Not investment advice.

Passive Flow Attribution

ETF Draft Effect
$22.0B
Tracked Passive Exposure
8
ETFs Holding CRM
0.33%
Avg Weight in ETFs
$6.7T
Total ETF AUM

When investors buy or sell ETFs like IGV or CLOU, the fund manager is mechanically forced to buy or sell CRM shares regardless of Salesforce, Inc.'s individual fundamentals. We estimate $22.0B of passive capital is structurally linked to CRM through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in Salesforce, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

CRM Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
CRMEpicenterVTIETFVOOETFIVVETFAMZNLow RiskGSHigh RiskMSFTLow RiskCATLow RiskORCLMed Risk
CRM Price Drop (%)0

If Salesforce, Inc. (CRM) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies Amazon.com Inc (AMZN) as the most exposed collateral stock, sharing 2 ETFs with CRM. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 38 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

CRM Ownership Dynamics

Passive funds hold 1 in every 7 CRM shares, reducing daily market volatility.

Ticker
CRM
Total Shares
819M
ETF Lock-Up
14.6%
Display Mode
Total Float Impact
14.6%Locked Float

Salesforce, Inc. (CRM) exerts measurable gravity on the passive index market, currently representing 6.7% of the IGV (IGV) and 4.1% of the CLOU (CLOU). Across 37 tracked ETFs, approximately 119M shares (14.6% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.

Float lock-up computed from 37 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

CRM Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
CRM
PRICE
$200.84
FLOOR (POC)
$183.18
STRENGTH
Medium
$166$172$1787%$183POC 10%$1898%$1948%$200$200.84$206$211$217$223$228$234$2398%$2459%$251$2567%$2628%$267$273
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for Salesforce, Inc. over the past year sits near $183.18 (10% of 252-day volume). The current price of $200.84 trades 9.6% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

CRM Capital Efficiency

How efficiently does Salesforce, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$14.4B
EBITDA
$12.5B
FCF Conversion
115%
Reinvestment Rate
-15%
115% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
9.4%
ROIC − WACC Spread
-2.8%

Salesforce, Inc. converts 115% of its EBITDA into free cash flow, an exceptional conversion rate indicating an asset-light business model with minimal capital reinvestment drag. However, the ROIC-WACC spread is negative (-2.8%), suggesting reinvested capital is destroying shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-1425$165.84$4,146
2026-05-081,202$186.34$223,980.68
2026-05-0540$185.48$7,419.2
2026-05-04896$183.82$164,702.72
2026-05-014,000$176.53$706,120
2026-04-2919,460$181.32$3.5M
2026-04-235$189.80$949
2026-04-156$171.31$1,027.86
2026-04-13250$164.96$41,240
2026-04-08722$182.96$132,097.12
2026-04-07100$185.03$18,503
2026-04-02838$186.24$156,069.12
2026-03-3180$185.03$14,802.4
2026-03-27212$185.64$39,355.68
2026-03-2621,587$181.96$3.9M
2026-03-2568$183.02$12,445.36
2026-03-18140$195.31$27,343.4
2026-03-1617,296$192.83$3.3M
2026-03-0950,095$202.11$10.1M
2026-03-03162$192.95$31,257.9
2026-02-2780$199.47$15,957.6
2026-02-26109,054$191.75$20.9M
2026-02-1912$187.79$2,253.48
2026-02-1715,292$189.72$2.9M
2026-02-13108$185.43$20,026.44
2026-02-12700$185.00$129,500
2026-02-118,911$193.45$1.7M
2026-02-0925$191.35$4,783.75
2026-02-04166$196.38$32,599.08
2026-01-305,509$214.08$1.2M

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Institutional Holdings (13F Filings)

Raw SEC 13F-HR filings from institutional investment managers. Shows exact share counts and portfolio values as reported to the SEC.

FundQuarterSharesValue ($K)
Renaissance Technologies2026-Q15,962,210$297,991,256K
Citadel Advisors2026-Q11,041,900$52,074,162K
Soros Fund Management2026-Q1215,000$10,745,700K
Millennium Management2026-Q170,300$3,513,594K
Bridgewater Associates2026-Q168,663$3,431,777K
Two Sigma Investments2026-Q133,600$1,679,328K
DE Shaw2026-Q120,000$999,600K
Point72 Asset Mgmt2026-Q17,900$394,842K
Renaissance Technologies2025-Q45,367,442$297,570,984K
Point72 Asset Mgmt2025-Q4625,800$34,694,352K
Citadel Advisors2025-Q4531,500$29,466,360K
Bridgewater Associates2025-Q4439,413$24,361,057K
Millennium Management2025-Q4208,720$11,571,437K
DE Shaw2025-Q4176,400$9,779,616K
Two Sigma Investments2025-Q427,600$1,530,144K

Source: SEC 13F-HR filings. Values reported in thousands. 13F data is delayed ~45 days after quarter end.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
NOW0.7280.741High co-movement
ADBE0.6900.737Moderate
WDAY0.6770.691Moderate
INTU0.6150.706Moderate
PAYC0.6100.670Moderate
GTLB0.6070.558Moderate
ADSK0.5830.585Moderate
TENB0.5700.553Moderate
GEN0.5500.609Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare CRM to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.