Forecast Of The Day: Salesforce.com’s Cloud Software Revenue
What?
Salesforce.com’s (NASDAQ:CRM) Cloud Software Revenue – which includes all its cloud offerings except the core Sales Cloud and Service Cloud – rose from about $4.5 billion in FY’20 to about $6.3 billion in FY’21. Trefis expects the metric to rise to about $8.8 billion in FY’22 and to around $12 billion in FY’23.
Why?
- Down 7.3% In A Day, Where Is Salesforce Stock Headed?
- Up 69% In The Last Twelve Months, What To Expect From Salesforce Stock?
- Up 74% Since The Beginning of 2023, Will Salesforce Stock Continue Its Strong Rally?
- Salesforce Stock Is Undervalued
- Salesforce Stock To Edge Past The Consensus In Q1
- Salesforce Stock Is Trading Below Its Fair Value
We expect growth to be driven by the rapid expansion of the cloud computing market and Salesforce.com’s focus on rolling out new offerings.
So What?
We think the projected growth is largely priced into Salesforce stock. We value CRM stock at about $300 per share, about 5% ahead of the market price.
See Our Complete Analysis For Salesforce.com
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| Returns | Nov 2021 MTD [1] |
2021 YTD [1] |
2017-21 Total [2] |
| CRM Return | -4% | 28% | 315% |
| S&P 500 Return | 1% | 22% | 105% |
| Trefis MS Portfolio Return | -3% | 46% | 297% |
[1] Month-to-date and year-to-date as of 11/29/2021
[2] Cumulative total returns since 2017