Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Salesforce, Inc., formerly Salesforce.com, Inc., is a provider of customer relationship management (CRM) platform. Its customer 360 platform delivers a source, which connects customer data across systems, applications, and devices to help companies sell, service, market, and conduct commerce from anywhere. It focuses on cloud, mobile, social, analytics, and artificial intelligence, which connect to its customers and enable companies to transform their businesses.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~34.61% of the total shareholding. The Vanguard Group, Inc. 7.80% and Fidelity Management & Research Company LLC are holding the maximum stake in the company at ~7.80% and ~5.97%, respectively.

1.4 Key Metrics:

The company is generating consistent free cash flows for the past six years except for Q12021 because of COVID-19-led disruptions, depicting increased efficiency with good strategic decisions, moreover, the five-year CAGR stands at 21.08%. The other graph shows, that revenues are likewise in line with projections and are trending upward, also 5 -The year’s Gross profit average is above 70% which reflects the strength of the business model to dominate the competition and constantly throw free cash flows to fund future growth.

1.5 Available at a Discount to Its Peers

From the graph, CRM is trading at a Price to Book value of 2.88x which is the lowest among its peers. Also, from forward P/E multiple standpoint CRM stands at 32.49x which is again on the lower side as compared to its peers and makes CRM appealing as compared to its peers.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY23:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance. 

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.