Thursday, March 09, 2006
CRM - hold or sell
I bought CRM right around 22-23, before it's current run up. Now, i am wondering if i should keep it or sell it. At about 4B in marketcap, this does seem quite overvalued. On the other hand, it's appexchange seems quite promising and there seems to be a lot of value there. As more and more publishers get involved with appexchange the value for salesforce.com's platform will grow and fuel future growth. Has that already been factored into CRM's price here?
Comments:
Every time I look at Salesforce.com, I get the feeling they are overvalued. Then they go ahead and deliver stellar results. It looks like a good long-term stock but in the short-term I think all the good news is already factored into the stock. A P/S of 13.22 and trailing P/E of 162.04 is a little too rich for my taste. The risk is a rapid sell-off if there were even stumble once.
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