2 AI Model, same prompt different outcomes

CHATGPT * I ran a 5-year DCF (Fiscal base: FY2025 revenue = **$37.895B**) with two terminal approaches (perpetuity growth and exit multiple). Revenue / operating margin / D&A / capex assumptions are listed below. Source data: Salesforce FY25 and public data. * **Base-case WACC (calculated)** ≈ **11.09%** (CAPM: RF 4.05% + β 1.28 × ERP 5.5%). Sources: 10-yr Treasury, beta, market inputs. * **DCF outputs (per-share):** * Perpetuity terminal (g = 2.5%): **$143.6 / share** * Exit-multiple terminal (12× FY5 EBITDA): **$171.0 / share** * **Market price (approx)**: **$183 / share** (mid-Feb 17, 2026). * **Verdict:** *Slightly overvalued / roughly fairly valued depending on terminal assumption.* * Under conservative terminal/perpetuity assumptions, intrinsic ≈ **$144** (≈-22% vs market). * Using a reasonable SaaS exit multiple (12×) intrinsic ≈ **$171** (≈-7% vs market). * Key model breakers: terminal growth & WACC (cost of equity), operating margins (AI/data center investments → higher D&A), and M&A / large share buybacks / tax items. GEMINI Following the recent sector-wide software sell-off, Salesforce (CRM) is currently trading at **$189.72**. Our Discounted Cash Flow (DCF) analysis, predicated on the company’s "Profitable Growth Framework" (FY30 $60B revenue target) and the monetization of **Agentforce**, suggests significant intrinsic value. Despite near-term volatility, the fundamentals support a **Buy** rating. # Valuation Verdict: UNDERVALUED * **Implied Fair Value:** $284.15 * **Current Price:** $189.72 * **Upside:** 49.8% 5 year projection |**Fiscal Year (Ends Jan)**|**2026E**|**2027E**|**2028E**|**2029E**|**2030E**| |:-|:-|:-|:-|:-|:-| |**Revenue ($B)**|$38.90|$43.18|$47.93|$53.20|$60.12| |**Revenue Growth**|9.1%|11.0%|11.0%|11.0%|13.0%| |**EBIT Margin (Non-GAAP)**|34.5%|35.5%|36.0%|36.5%|37.0%| |**Operating Income ($B)**|$13.42|$15.33|$17.25|$19.42|$22.24| Cash Flow |**Step (all figures $B)**|**2026E**|**2027E**|**2028E**|**2029E**|**2030E**| |:-|:-|:-|:-|:-|:-| |**EBIT (Operating Income)**|$13.42|$15.33|$17.25|$19.42|$22.24| |Less: Cash Taxes (20%)|($2.68)|($3.07)|($3.45)|($3.88)|($4.45)| |**EBIAT**|**$10.74**|**$12.26**|**$13.80**|**$15.54**|**$17.79**| |Plus: D&A|$1.20|$1.35|$1.50|$1.65|$1.80| |Less: CapEx|($0.95)|($1.05)|($1.15)|($1.25)|($1.40)| |Less: Δ NWC|$1.80|$2.00|$2.20|$2.40|$2.70| |**Free Cash Flow (FCF)**|**$12.79**|**$14.56**|**$16.35**|**$18.34**|**$20.89**| Sensitivity Analysis |**WACC \\ Growth**|**2.0%**|**2.5%**|**3.0%**|**3.5%**| |:-|:-|:-|:-|:-| |**8.2%**|$315.42|$332.10|$355.80|$380.20| |**9.2%**|$260.15|$271.40|**$284.15**|$302.50| |**10.2%**|$220.80|$230.12|$240.45|$255.30| You will notice here that even with AI there seems to be a lot of discripancy. I think the AI hype is overblown you will still need a human interception or an AI model to suprvise the AI output ?