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

Core Viewpoint - Salesforce Inc is being undervalued in the market as it is treated like a mature enterprise software company, despite the transformative impact of artificial intelligence on its platform and monetization strategies [1]. Valuation and Market Position - Salesforce trades at approximately 14 times forward free cash flow, significantly lower than peers in the low-20s range, indicating a market skepticism about its growth potential rather than its fundamentals [2]. - The stock's valuation has compressed even as free cash flow per share remains robust and predictable, with Salesforce not facing demand or relevance issues, benefiting from established customer workflows and long-term contracts that ensure revenue stability [3]. Shareholder Returns and Financial Strategy - Salesforce's aggressive share repurchase activity is highlighted as a key differentiator, allowing the company to return capital while still investing in innovation, providing downside support for the stock in a market focused on AI spending [4]. AI Integration and Market Impact - The AI narrative within Salesforce is integrated into its existing ecosystem rather than through standalone model releases, with Agentforce ranking highly among agentic AI products according to JPMorgan's surveys [5]. - Salesforce is not yet being rewarded for its AI capabilities, but the embedded AI features across various workflows are expected to drive additional monetization without the need for aggressive pricing or new customer acquisition, positioning it as an AI beneficiary priced like a value stock [6].