Salesforce Valuation Reset: AI Growth, Low Debt, And A Much Higher Fair Value Case

Salesforce (CRM) is trading near a 50% drawdown despite continued growth in revenue, EPS, and free cash flow. The company’s AI-driven products, such as Agentforce, are seeing strong adoption, which is expected to fuel future growth reacceleration into the low-to-mid teens. With a low net debt-to-EBITDA ratio of around 0.29x, Salesforce maintains significant financial flexibility, though a key risk remains the potential for cloud hyperscalers to bundle AI and other services, potentially disrupting standalone enterprise software providers.

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