Is CRM considered undervalued right now? What is the typical analyst rating as of now

**Bottom line:**
Most sell-side analysts still classify Salesforce (CRM) as a **“Buy”**, and the stock is trading at a meaningful discount to their average 12-month price target (~ 19 % upside). On valuation, CRM does **not look cheap on absolute earnings (P/E ≈ 41×)**, but it *does* screen as **inexpensive on a sales multiple (P/S ≈ 6.5×)** versus large-cap software peers (8-18×). That mix of below-peer sales multiple, solid free-cash-flow generation, and healthy growth keeps the consensus view tilted bullish rather than neutral.

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### 1. Street view today
| Metric | Value | Comment |
|---|---|---|
| Current price | $263.17 | 4 Jun 2025 close |
| Mean 12-m price target | $324.38 | ∼ +19 % implied upside |
| Distribution of 10 fresh ratings (May-Jun 2025) | • Strong Buy 3 • Buy 2 • Neutral/Hold 3 • Sell 2 | Weighted average ≈ 2.4 on a 1-5 scale → “Buy” leaning |

*Take-away:* the *typical* rating is **Buy**, with only a minority of outright Sells.

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### 2. How does the valuation stack up?
| Company | P/E (TTM) | P/S (TTM) |
|---|---|---|
| Salesforce | **40.6×** | **6.5×** |
| Microsoft | 35.7× | 12.8× |
| Adobe | 26.1× | 8.0× |
| ServiceNow | 136.4× | 18.3× |
| Intuit | 61.7× | 11.8× |

• **Earnings multiple:** CRM trades modestly above MSFT/ADBE but well below high-growth peers such as NOW and INTU.
• **Sales multiple:** CRM’s 6.5× is the *lowest* in the peer set, 20-50 % below more mature megacaps (MSFT, ADBE) and >60 % below high-growth ServiceNow.

*Interpretation:* If you believe Salesforce can keep expanding margins—as management continues to emphasize efficiency—then the relatively low P/S suggests there is room for multiple expansion, even if the P/E looks rich on today’s GAAP earnings.

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### 3. Is CRM “undervalued” right now?

1. **Relative valuation:** Cheap on sales, mid-pack on earnings → *mildly undervalued* relative to software peers, especially given CRM’s improving operating margin profile.
2. **Absolute valuation:** 40× earnings is hardly a deep-value price, so the label “undervalued” hinges on your growth and margin assumptions.
3. **Market expectations:** With the stock ~19 % below the Street’s mean target and the consensus rating at Buy, the professional community broadly views current levels as **attractive**, not stretched.

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### 4. What to watch next

• Management’s FY 2026 revenue guidance at Dreamforce (typically September).
• Progress on operating-margin target (31 % medium-term).
• Uptake of Einstein AI + Data Cloud bundles, which could justify higher revenue multiples.
• Large-cap software sentiment—sector rotations can swing relative valuation quickly.

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**In short:** While CRM is not a bargain basement stock, its comparatively low sales multiple and the Street’s bullish stance justify calling it *slightly* undervalued today—particularly if margin expansion stays on track.