Salesforce Inc., FCFF calculation

US$ in millions

12 months ended:	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018	Jan 31, 2017
Net income	1,444	4,072	126	1,110	127	180
Net noncash charges	6,214	1,921	4,535	2,460	2,246	1,841
Changes in assets and liabilities, net of business combinations	(1,658)	(1,192)	(330)	(172)	365	142
Net cash provided by operating activities	6,000	4,801	4,331	3,398	2,738	2,162
Cash paid during the period for interest, net of tax¹	176	76	19	74	25	36
Capital expenditures	(717)	(710)	(643)	(595)	(534)	(464)
Free cash flow to the firm (FCFF)	5,459	4,167	3,707	2,877	2,229	1,734

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

¹ See details »

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Salesforce Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Salesforce Inc. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Salesforce Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018	Jan 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	5.74%	21.00%	82.15%	21.00%	36.93%	35.00%
Interest Paid, Net of Tax
Cash paid during the period for interest, before tax	187	96	106	94	40	55
Less: Cash paid during the period for interest, tax²	11	20	87	20	15	19
Cash paid during the period for interest, net of tax	176	76	19	74	25	36

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

¹ See details »

² 2022 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= 187 × 5.74% = 11

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	190,758
Free cash flow to the firm (FCFF)	5,459
Valuation Ratio
EV/FCFF	34.94
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	22.45
Adobe Inc.	28.69
International Business Machines Corp.	13.73
Intuit Inc.	41.18
Mastercard Inc.	38.70
Microsoft Corp.	33.17
Oracle Corp.	35.09
PayPal Holdings Inc.	13.45
ServiceNow Inc.	53.48
Visa Inc.	29.57
EV/FCFF, Sector
Software & Services	30.24
EV/FCFF, Industry
Information Technology	28.24

Based on: 10-K (reporting date: 2022-01-31).

¹ Click competitor name to see calculations.

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

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

	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018	Jan 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	196,365	187,123	146,907	118,576	90,694	58,565
Free cash flow to the firm (FCFF)²	5,459	4,167	3,707	2,877	2,229	1,734
Valuation Ratio
EV/FCFF³	35.97	44.91	39.63	41.21	40.68	33.77
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	—	24.76	17.90	18.49	17.18	19.43
Adobe Inc.	—	33.61	40.43	40.48	31.36	33.45
International Business Machines Corp.	—	13.10	9.35	12.86	12.27	12.20
Intuit Inc.	—	48.64	37.90	33.30	27.69	25.66
Mastercard Inc.	—	40.63	50.00	44.83	38.09	33.93
Microsoft Corp.	32.31	38.37	33.99	26.37	23.99	15.60
Oracle Corp.	31.60	16.36	14.99	14.03	11.11	15.07
PayPal Holdings Inc.	—	19.26	52.80	28.53	16.81	36.26
ServiceNow Inc.	—	60.36	84.56	73.46	75.66	56.67
Visa Inc.	—	28.71	44.35	31.67	25.49	29.33
EV/FCFF, Sector
Software & Services	—	31.52	31.00	25.98	22.18	19.51
EV/FCFF, Industry
Information Technology	—	28.12	26.14	21.26	17.95	18.37

Based on: 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), 10-K (reporting date: 2018-01-31), 10-K (reporting date: 2017-01-31).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 196,365 ÷ 5,459 = 35.97

⁴ Click competitor name to see calculations.

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Salesforce Inc. EV/FCFF ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Salesforce Inc. (NYSE:CRM)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical