Jun. 06, 2025 11:43 AM ETSalesforce, Inc. (CRM) Stock, CRM:CA StockINFA, HUBS, MNDY, CRM, CRM:CA1 CommentThinkValue326 Followers(20min)Salesforce trades at an acceptable premium, and I expect value creation as GAAP operating margins rise on account of lower customer acquisition costs.Growth is slowing, with limited organic opportunities and increased competition, but Salesforce’s enterprise customer base remains sticky, defensible, and low maintenance costs will contribute to increased margins.My valuation results in a $204/share intrinsic value and $230/share 1-year price target, driven by 13% annual free cash flow CAGR for the forecasted 10-year period.I rate Salesforce a Buy, with the main KPI being GAAP operating margin improvement, while monitoring competitive threats from MSFT, HUBS, and MNDY.Sundry Photography/iStock Editorial via Getty ImagesSalesforce (CRM) is frequently mentioned as a cheap or undervalued stock on account of its depressed pricing multiples. During my analysis I outline why this is not the case, and why the stockThis article was written byThinkValue326 FollowersEquity research with an emphasis on intrinsic value. We prioritize undervalued and growing companies, preferably in the early stages of their development. We have an internal wishlist - message us a ticker or write it in comment sections.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comment(1)