Salesforce Hits Its Cheapest Valuation Ever Amid Crushing AI Anxiety

Even bargain hunters are staying away from SalesforceCRM

, and that’s saying something. The CRM giant has plunged nearly 30% this year, ranking among the Dow and S&P 500’s worst performers. Now trading at its lowest valuation since 2004, management still forecasts accelerating performance, creating a paradox: historic opportunity or AI value trap?

• CRM
  trades at just 19x forward earnings, well below its 47x decade average, and the S&P 500’s 22x multiple — while peers like MicrosoftMSFT
  , OracleORCL
  , and PalantirPLTR
  thrive.
• Wall Street’s verdict is clear, as consensus estimates haven’t budged in 12 months — stuck in “show-me” mode until Salesforce can prove meaningful revenue from its AI investments.

The disconnect: Salesforce beat Q3 estimates, and its Agentforce AI racked up $540M in annual recurring revenue with 18.5K deals since October — but most transactions remain “low-six figures,” and Wall Street isn’t buying the hype. Investors worry AI-native upstarts like OpenAI will gut demand for legacy CRM tools and crush pricing power, while Citi analysts say actual customer adoption remains limited. The broader SaaS sector is down 12% this year on identical AI existential dread, so either Salesforce proves it’s mission-critical, or this discount gets steeper.