Is Salesforce a good stock to buy?

We see Salesforce as an attractive stock with a unique opportunity to drive 1,000 basis points of margin improvement over the next several years that simply doesn’t exist within large-cap software. With its 3-star rating, we believe Salesforce stock is fairly valued, in line with our long-term estimate.

Is Salesforce stock overvalued or undervalued?

Read more about Salesforce’s fair value estimate. Ratios over 1.00 indicate when the stock is overvalued, while rations below 1.00 mean the stock is undervalued. For Salesforce overall we assign a wide moat rating, arising primarily from switching costs, with support from a network effect.

How will Salesforce's continued deceleration affect its stock?

Therefore, continued deceleration in the Sales Cloud, or growth that does not materialize as expected in the Service Cloud, Marketing Cloud, Commerce Cloud, or Salesforce Platform would likely have an adverse impact on the stock. Salesforce is also likely to face new competitors as it continues to acquire its way into new markets.

Who owns shares of Salesforce?

Leo Sun owns shares of Salesforce.com. The Motley Fool owns shares of and recommends Salesforce.com and Slack Technologies. The Motley Fool has a disclosure policy.