Salesforce Is Priced Like A Value Stock — JPM Says The Market Is Missing The AI Angle

by | Dec 18, 2025 | General

Salesforce Inc (NYSE:CRM) is being valued like a mature enterprise software name just as artificial intelligence begins to reshape how its platform is used — and monetized. JPMorgan argues that the disconnect has created one of the most mispriced opportunities in large-cap software.

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While investors chase infrastructure-heavy AI winners, Salesforce trades at roughly 14x forward free cash flow, far below peers closer to the low-20s. JPMorgan says that gap reflects skepticism about growth rather than fundamentals — and may be overdone.

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CRM Stock’s Valuation Disconnect

The stock’s multiple has compressed even as free cash flow per share remains healthy and predictable. Unlike earlier software cycles, this isn’t a business struggling with demand or relevance. Salesforce continues to benefit from deeply embedded customer workflows and long-duration contracts that provide revenue stability even in slower macro conditions.

JPMorgan highlights Salesforce’s aggressive share repurchase activity as a key differentiator. In a market where AI spending is pushing many companies toward heavier balance sheets, Salesforce is returning capital while still funding innovation. That combination gives the stock downside support — a rare trait in AI-adjacent software.

Agentforce Traction

The AI story sits inside Salesforce’s existing ecosystem rather than in headline-grabbing model releases. JPMorgan’s CIO and partner surveys show Agentforce ranking near the top among agentic AI products. More importantly, Salesforce remains one of the most indispensable vendors in enterprise IT, reinforcing switching costs and pricing power.

AI Without Multiple Expansion

Salesforce isn’t being rewarded for AI optimism — yet. JPMorgan believes AI features embedded across sales, service, and data workflows can drive incremental monetization without relying on aggressive pricing or new customer acquisition.

In a market paying up for AI narratives, Salesforce stands out as an AI beneficiary priced like a value stock.

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