Starboard Value Sees Salesforce (CRM) Undervalued, Urges Efficiency, Margin Expansion, and Shareholder Value Focus

Starboard’s October 2024 presentation highlights Salesforce’s sharp margin expansion—over 1,000 basis points since FY2023—leading to nearly a doubling of its stock price in two years. Starboard argues Salesforce remains undervalued relative to peers despite improved growth and profitability, with potential to exceed the “Rule of 50” (growth plus margins) by FY2028 and generate over $20 per share in free cash flow. It points to continued efficiency gains in sales, marketing, and G&A, alongside growth drivers like Agentforce, as reasons the company can sustain momentum. Overall, Starboard frames Salesforce as a transformed but still mispriced opportunity with multiple paths to higher shareholder value.