CRM - Embedded Expectations Analysis - 2021 05 03
salesforce.com, inc. (CRM:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 56.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about customer relationships, their software development pipeline, and their sales teamsSpecifically, management may lack confidence in their ability to continue building direct business-to-business (B2B) and business-to-consumer (B2C) digital relationships, create better customer relationships, and help accelerate digital transformation for customers across different industries. Furthermore, they may be exaggerating the strength of their positioning in the software industry and their ability to successfully adjust their pipeline to pandemic-related changes. They may also lack confidence in their ability to implement more pandemic response-related technologies across different cities, serve all stakeholders through their Hyperforce architecture, and help schools with remote learning. Additionally, management may have concerns about their Customer 360 platform as well as rising attrition rates. Finally, they may lack confidence in their ability to deploy standard Salesforce solutions, continue engaging with customers through Sales Cloud, and deliver highly customized selling with the same client presentations
Salesforce.Com is engaged in customer relationship management technology. The company's Customer 360 is an integrated platform that unites sales, service, marketing, commerce, integration, analytics and more to give companies a single, shared view of their customers. Through its platform and other developer tools, the company also enables third parties to develop additional functionality and applications, or apps, that run on its platform, which are sold separately from or in conjunction with the company's service offerings. The company's cloud service offerings include sales cloud, service cloud, marketing and commerce cloud, and salesforce platform and other.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.