Should you Invest in Salesforce Stock? Projected growth | Ben Analyst

Sign Up For Salesforce Business Analyst Tutorial: http://sfbatraining.com/ I am not a financial adviser but in today’s video we will be talking about investing in the stock market. Should you invest in salesforce? Salesforce stock price is still cheap relative to its long-term growth. Salesforce's stock has tripled over the past five years as it's impressed investors with its robust revenue growth and stabilizing profits. But can the cloud services company replicate those gains over the next five years? Let's take a closer look at its long-term tailwinds to find out. Salesforce controlled 19.8% of the global customer relationship management (CRM) market in the first half of 2020, according to IDC. The firm has named Salesforce the market leader for seven straight years. Salesforce's four closest rivals -- SAP, Oracle, Microsoft, and Adobe -- held a combined share of just 17.8% in the first half of 2020. It's doubtful those rivals will catch up to Salesforce within the next five years. The global CRM market, which was valued at $40.2 billion in 2019, could continue expanding at a compound annual growth rate (CAGR) of 14.2% from 2020 to 2027, according to Grand View Research. If Salesforce matches that growth rate, its annual revenue could more than double from $21.1 billion in fiscal 2021 to over $53 billion in fiscal 2028. Salesforce's own estimates outpace that forecast. At its investor day presentation in December, management estimated the company would generate over $50 billion in annual revenue in fiscal 2026 -- which would represent a CAGR of 19% between fiscal 2021 and 2026. Salesforce recently agreed to acquire Slack, the enterprise communication in a $27.7 billion deal, to grow at a CAGR of 38% between fiscal 2022 and 2026 and generate $4 billion in annual revenue in the final year. It expects its core business, which includes its CRM platform and other cloud services, to grow at a CAGR of 17% during that period. Salesforce's stock already looks cheaper than those of many other high-growth cloud stocks at eight times next year's sales. However, its revenue estimates for 2026 indicate the stock could easily double within the next five years while maintaining the same price-to-sales ratio. So if you are looking to make a long term investment in the stock market, salesforce is a good option.  And if you are looking to become a salesforce Business analyst, you can click the link in the description below. See you in the next video and until then keep smiling!

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