Salesforce: An Updated Look At Valuation

In today’s article, we’ll take a closer look at Salesforce’s current valuation to assess whether its shares present a compelling buying opportunity for long-term investors.

Dear readers,

Welcome back to the Quality Equities Premium Newsletter.

For those who have been following my articles for a while, you’ve likely noticed my strong preference for software companies. Their high-margin, recurring revenue business models make them particularly attractive. Over the past decade, software companies (led by a handful of big tech giants) have dominated the market. However, in 2025, big tech and software stocks have struggled, with share prices declining amid a broader market downturn. Just this past week, the S&P 500 and Nasdaq both fell more than 2%, marking their fourth consecutive week of losses.

One software company that has been hit particularly hard is CRM 0.00%↑ Salesforce, a long-term holding in my portfolio. Salesforce shares are down more than 15% so far in 2025 and down roughly 24% from all-time highs.

In today’s article, we’ll take a closer look at Salesforce’s current valuation to assess whether its shares present a compelling buying opportunity for long-term investors.

Reverse DCF

As my subscribers know, I prefer to evaluate companies from multiple perspectives, including the reverse discounted cash flow model.