Why is Salesforce stock being called ‘historically cheap': is now the time to buy?

Core Insights - Salesforce is being viewed as a value stock due to its shares trading near 52-week lows and a forward price-to-earnings (P/E) ratio of approximately 19.6x, significantly lower than its five-year average of over 40x or 50x during peak growth phases [1][1][1] - The market is concerned about Salesforce's growth potential, particularly regarding its core CRM business and the new AI platform, Agentforce, which has not yet contributed meaningfully to revenue [1][1][1] Valuation Analysis - Salesforce's current P/E ratio of 19.6x is a stark contrast to the broader tech sector average of around 32x, indicating a significant valuation gap [1][1] - The stock's decline to the $220–$230 range reflects investor skepticism about the company's ability to return to double-digit growth [1][1] Catalysts and Risks - The bullish outlook hinges on the success of Agentforce, which could lead to a substantial re-rating of the stock if it effectively upsells AI agents to its existing customer base [1][1] - Analysts at Oppenheimer maintain an "Outperform" rating with a $300 price target, citing Salesforce's strong financial health and potential for revenue expansion through AI [1][1] - The bear case highlights execution risks, with only about 8% of customers currently adopting Agentforce, and potential macroeconomic headwinds affecting enterprise IT spending [1][1][1]