Should you buy Salesforce stock? (June 2024)

Published first at https://www.3minutebreakdowns.com Salesforce stock analysis. Ticker: $CRM Salesforce reported earnings recently and the stock plunged 20%. Shares have recovered slightly since then but they’re still down 26% from the peak. At the latest price, Salesforce has a market cap of 228 billion dollars. With 17 billion of cash and investments on its balance sheet and 9 billion of debt the company’s enterprise value is just under 220 billion. Revenue over the last 12 months comes to 35.7 billion with 5.5 billion of net income and 11.3 billion of free cash flow. So Salesforce stock is now valued at 42 times earnings, and 19 times free cash flow. That valuation may seem high but it is in fact the lowest the company has traded at since it’s IPO. And that’s because since it went public, Salesforce has been one of the best stocks in the market. Revenue has compounded steadily, and for more than 17 years, Salesforce didn’t miss a single Wall Street estimate. Between 2004 and the end of 2021, the stock produced annualized returns of almost 30%. However, last month’s earnings was the first time the company has missed estimates for revenue growth since 2006. Sales grew just 11% and guidance looks even worse. Revenue for the full year is expected to grow just 8 or 9%. So the key question for investors is whether this business is as good going forward as it has been in the past. #investing #stocks #salesforce #3mb