Salesforce, Inc. (CRM): fair value, margin of safety and Wheel Score

Is CRM undervalued?

Salesforce, Inc. (CRM) closed at 246.74 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 316.75, so the price sits 22% below it. 4 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.

The 9 models disagree widely: DDM gives 25.54 while Payback Time gives 731.79. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files CRM under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for CRM

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is average - CRM passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 8.1 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are moderate - ROIC 9.8%, ROE 12.6%, ROA 6.6% - with debt at 0.29 times equity and a free-cash-flow yield of 7.5%.

The dividend yield is 0.70% with a payout ratio of 16% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Subscription and Support 95%, Professional Services and Other 5% (quarter Q2 FY2027).

Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 6/10 on the GLS smart-money scales; the last recorded insider buy was on 22 Sep 2026; the last recorded Congressional buy was on 14 Aug 2026.

Wheel Score 87: Prime

CRM scores 87 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 22/25), Piotroski health (13/20), the GLS moat (12/15), the option premium on offer (20/20) and how easily the stock trades (20/20).

Implied volatility is 41% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 475,565 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 8.7M shares a day on a market cap of $203.1B, with a beta of 1.26 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 2 Dec 2026, 47 days away - outside the window of a 30-45-day put sold today.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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