Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Salesforce Inc., FCFF calculation

US$ in millions

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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).

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.

Interest Paid, Net of Tax

Salesforce Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
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


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel LibreOffice Calc
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.