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Today we're going to take a look at the well-established Salesforce, Inc. (NYSE:CRM). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$360 at one point, and dropping to the lows of US$236. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Salesforce's current trading price of US$250 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Salesforce’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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Is Salesforce Still Cheap?

Good news, investors! Salesforce is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $381.15, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Salesforce’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Check out our latest analysis for Salesforce

Can we expect growth from Salesforce?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Salesforce's earnings over the next few years are expected to increase by 60%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since CRM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.