Salesforce, Inc. (CRM) vs Paramount Skydance Corporation (PSKY): Which Is the Better Buy in 2026?
As of 2026-06-19, CRM is undervalued at $152, with a DCF intrinsic value of $274 and a margin of safety of 45%. PSKY is undervalued at $10, with an intrinsic value of $1100 and a margin of safety of 99%. Of the two, PSKY has the wider margin of safety.
Rewards
- ★Gross margin of 77.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 31.6% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $5.53 of earning power — management is an exceptional capital allocator.
- ★Share count has been reduced by 40% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★FCF yield of 147.4% is historically attractive — the business generates significant cash relative to its price.
- ★Market sentiment is in extreme fear territory (score: 25/100) — historically, periods of fear have often presented buying opportunities.
Risks
- ⚠Net debt/EBITDA of 4.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
- ⚠Altman Z-Score of 0.31 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Free cash flow has declined at a 6.5% CAGR over the past 4 years — a concerning trend.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $152?
The market implies +3.6% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -2.8%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $10?
Market below historical growth — potential opportunity.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Forensic Accounting
Learn more →M-Score Trend
Insufficient data for Beneish M-Score calculation (requires 2+ years).
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Mr. Market is panicking — potential buying opportunity if fundamentals are strong"
"Market is pessimistic — investigate whether fears are temporary or structural"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: CRM vs PSKY
Is Salesforce, Inc. or Paramount Skydance Corporation more undervalued in 2026?▼
Based on our discounted cash flow model, PSKY trades at a 99.1% margin of safety (intrinsic value $1100 vs. price $10), compared to CRM's 44.5% margin of safety (intrinsic $274 vs. $152).
Which stock has a wider economic moat, Salesforce, Inc. or Paramount Skydance Corporation?▼
CRM scores 58/100 (Narrow moat), while PSKY scores 33/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Paramount Skydance Corporation in financial distress?▼
PSKY's Altman Z-Score of 0.3 places it in the Distress zone, signaling elevated bankruptcy risk. CRM scores 2.4 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which company has better free cash flow, Salesforce, Inc. or Paramount Skydance Corporation?▼
Paramount Skydance Corporation (PSKY) generates a 147.4% free cash flow yield, compared to Salesforce, Inc.'s 13.3%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Salesforce, Inc. or Paramount Skydance Corporation?▼
CRM earns 9.6% ROIC versus PSKY's 7.5%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.