Salesforce Inc., FCFF calculation

US$ in millions

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)
Net noncash charges	8,948)	8,972)	6,214)	1,921)	4,535)	2,460)
Changes in assets and liabilities, net of business combinations	(2,850)	(2,069)	(1,658)	(1,192)	(330)	(172)
Net cash provided by operating activities	10,234)	7,111)	6,000)	4,801)	4,331)	3,398)
Cash paid during the period for interest, net of tax¹	212)	87)	176)	76)	19)	74)
Capital expenditures	(736)	(798)	(717)	(710)	(643)	(595)
Free cash flow to the firm (FCFF)	9,710)	6,400)	5,459)	4,167)	3,707)	2,877)

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).

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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 2022 to 2023 and from 2023 to 2024.

Salesforce Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	16.44%	68.48%	5.74%	21.00%	82.15%	21.00%
Interest Paid, Net of Tax
Cash paid during the period for interest, before tax	254)	275)	187)	96)	106)	94)
Less: Cash paid during the period for interest, tax²	42)	188)	11)	20)	87)	20)
Cash paid during the period for interest, net of tax	212)	87)	176)	76)	19)	74)

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 2024 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= 254 × 16.44% = 42

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	264,236)
Free cash flow to the firm (FCFF)	9,710)
Valuation Ratio
EV/FCFF	27.21
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	21.01
Adobe Inc.	29.65
International Business Machines Corp.	15.20
Intuit Inc.	34.81
Microsoft Corp.	52.20
Oracle Corp.	35.39
Palo Alto Networks Inc.	33.70
ServiceNow Inc.	54.22
Synopsys Inc.	52.10
EV/FCFF, Sector
Software & Services	40.83
EV/FCFF, Industry
Information Technology	42.27

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

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, 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)
Free cash flow to the firm (FCFF)²	9,710)	6,400)	5,459)	4,167)	3,707)	2,877)
Valuation Ratio
EV/FCFF³	29.95	28.41	35.97	44.91	39.63	41.21
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	—	20.26	16.99	24.76	17.90	18.49
Adobe Inc.	—	37.75	20.82	33.61	40.43	40.48
International Business Machines Corp.	—	15.27	16.47	13.10	9.35	12.86
Intuit Inc.	—	31.28	32.85	48.64	37.90	33.30
Microsoft Corp.	—	41.75	32.31	38.37	33.99	26.37
Oracle Corp.	—	35.83	31.60	16.36	14.99	14.03
Palo Alto Networks Inc.	—	28.15	29.29	32.74	26.50	20.44
ServiceNow Inc.	—	56.49	40.86	60.13	83.74	67.96
Synopsys Inc.	—	55.87	30.82	38.59	42.88	33.32
EV/FCFF, Sector
Software & Services	—	35.26	29.16	31.90	27.10	23.26
EV/FCFF, Industry
Information Technology	—	34.25	27.01	27.93	24.12	19.69

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/FCFF = EV ÷ FCFF
= 290,863 ÷ 9,710 = 29.95

⁴ Click competitor name to see calculations.

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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 decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

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