Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Salesforce Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Net income 4,136 208 1,444 4,072 126 1,110
Add: Income tax expense 814 452 88 (1,511) 580 (127)
Earnings before tax (EBT) 4,950 660 1,532 2,561 706 983
Add: Interest expense on debt 254 287 216 110 110 126
Earnings before interest and tax (EBIT) 5,204 947 1,748 2,671 816 1,109
Add: Depreciation and amortization 3,959 3,786 3,298 2,846 2,135 982
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,163 4,733 5,046 5,517 2,951 2,091

Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Salesforce Inc. EBITDA decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Enterprise Value to EBITDA Ratio, Current

Salesforce Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 271,458
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,163
Valuation Ratio
EV/EBITDA 29.63
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 20.82
Adobe Inc. 27.40
Autodesk Inc. 47.69
Cadence Design Systems Inc. 51.97
CrowdStrike Holdings Inc. 239.71
International Business Machines Corp. 17.61
Intuit Inc. 38.46
Microsoft Corp. 23.35
Oracle Corp. 26.45
Palo Alto Networks Inc. 91.05
ServiceNow Inc. 119.18
Synopsys Inc. 51.41
EV/EBITDA, Sector
Software & Services 31.12
EV/EBITDA, Industry
Information Technology 36.26

Based on: 10-K (reporting date: 2024-01-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Salesforce Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 290,863 181,834 196,365 187,123 146,907 118,576
Earnings before interest, tax, depreciation and amortization (EBITDA)2 9,163 4,733 5,046 5,517 2,951 2,091
Valuation Ratio
EV/EBITDA3 31.74 38.42 38.91 33.92 49.78 56.71
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 17.26 14.25 23.31 17.46 15.60
Adobe Inc. 34.07 22.32 35.44 43.06 41.16
Autodesk Inc. 37.67 36.84 53.83 79.27 69.31 335.51
Cadence Design Systems Inc. 55.61 42.11 39.61 45.75 31.64
CrowdStrike Holdings Inc. 262.20
International Business Machines Corp. 14.41 22.17 12.53 12.28 10.23
Intuit Inc. 38.55 38.71 36.22 51.96 35.70 34.27
Microsoft Corp. 23.66 22.92 20.17 24.59 21.74 17.21
Oracle Corp. 21.81 21.80 17.12 13.78 11.54 11.83
Palo Alto Networks Inc. 84.17 85.08 515.16 349.95 117.16
ServiceNow Inc. 96.48 104.30 147.45 220.91 187.17
Synopsys Inc. 54.59 36.73 53.43 42.24 26.98
EV/EBITDA, Sector
Software & Services 24.84 22.25 25.32 22.51 18.25
EV/EBITDA, Industry
Information Technology 23.77 18.68 20.68 19.72 14.63

Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 290,863 ÷ 9,163 = 31.74

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Salesforce Inc. EV/EBITDA ratio decreased from 2022 to 2023 and from 2023 to 2024.