Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Salesforce Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-01-31), 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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities exhibited a consistent upward trend over the six-year period. Starting from $4,331 million in 2020, the figure increased year over year, reaching $13,092 million by 2025. Notably, the growth accelerated significantly after 2022, with a steep rise from $7,111 million in 2023 to $10,234 million in 2024, culminating in the highest recorded value in 2025. This pattern suggests improved operational efficiency or increased revenue generation contributing to stronger cash inflows from core business activities.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity showed a more volatile trajectory compared to net operating cash flow. Initial values rose from $3,012 million in 2020 to $3,964 million in 2021, followed by a substantial spike to $11,832 million in 2022. However, in 2023, FCFE declined sharply to $5,890 million before recovering again to $7,687 million in 2024 and further increasing to $10,831 million in 2025. This fluctuation may indicate variations in capital expenditures, debt repayments, or other financing activities affecting the residual cash available to equity holders.
- Comparative Insights
- While both cash flow metrics increased overall during the period, net cash from operations showed steady and more predictable growth, reflecting stable operational performance. In contrast, FCFE exhibited significant volatility, highlighting the influence of financing and investment decisions on the company’s cash flow available to equity investors. The sharp spike and subsequent dip in FCFE around 2022-2023 suggest possible non-operational financial events or changes in capital structure during this time frame.
Price to FCFE Ratio, Current
Salesforce Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 937,000,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 10,831) |
| FCFE per share | 11.56 |
| Current share price (P) | 256.26 |
| Valuation Ratio | |
| P/FCFE | 22.17 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 10.83 |
| Adobe Inc. | 14.06 |
| AppLovin Corp. | 88.12 |
| Cadence Design Systems Inc. | 27.88 |
| CrowdStrike Holdings Inc. | 107.78 |
| Datadog Inc. | 31.01 |
| International Business Machines Corp. | 24.11 |
| Intuit Inc. | 29.35 |
| Microsoft Corp. | 56.10 |
| Oracle Corp. | 106.37 |
| Palantir Technologies Inc. | 363.48 |
| Palo Alto Networks Inc. | 50.69 |
| ServiceNow Inc. | 45.48 |
| Synopsys Inc. | 6.38 |
| Workday Inc. | 25.10 |
| P/FCFE, Sector | |
| Software & Services | 44.42 |
| P/FCFE, Industry | |
| Information Technology | 52.20 |
Based on: 10-K (reporting date: 2025-01-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Salesforce Inc., historical P/FCFE calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 961,000,000 | 970,000,000 | 1,000,000,000 | 990,000,000 | 921,000,000 | 895,000,000 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 10,831) | 7,687) | 5,890) | 11,832) | 3,964) | 3,012) | |
| FCFE per share3 | 11.27 | 7.92 | 5.89 | 11.95 | 4.30 | 3.37 | |
| Share price1, 4 | 291.97 | 303.77 | 182.95 | 197.90 | 213.12 | 169.60 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 25.91 | 38.33 | 31.06 | 16.56 | 49.52 | 50.40 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Accenture PLC | 9.96 | 23.91 | 21.01 | 17.87 | 25.76 | 19.01 | |
| Adobe Inc. | — | 18.02 | 41.83 | 21.32 | 34.26 | 41.36 | |
| AppLovin Corp. | — | 44.88 | 21.70 | 14.03 | 8.57 | — | |
| Cadence Design Systems Inc. | — | 24.08 | 71.40 | 33.41 | 36.31 | 45.86 | |
| CrowdStrike Holdings Inc. | 71.69 | 85.82 | 42.65 | 99.63 | 41.38 | 880.68 | |
| Datadog Inc. | — | 28.64 | 71.93 | 69.38 | 202.25 | 41.33 | |
| International Business Machines Corp. | — | 20.90 | 9.97 | 11.97 | 48.45 | 9.43 | |
| Intuit Inc. | 31.01 | 38.43 | 38.74 | 13.86 | 86.74 | 17.36 | |
| Microsoft Corp. | 60.89 | 42.11 | 43.32 | 36.73 | 42.54 | 42.74 | |
| Oracle Corp. | 113.86 | 48.38 | 15.47 | — | 8.36 | 6.27 | |
| Palantir Technologies Inc. | — | 256.11 | 74.28 | 96.89 | 198.12 | — | |
| Palo Alto Networks Inc. | 50.89 | 52.90 | 79.75 | 29.54 | 32.91 | 8.11 | |
| ServiceNow Inc. | — | 61.82 | 58.19 | 44.44 | 64.54 | 49.83 | |
| Synopsys Inc. | 6.21 | 63.94 | 57.04 | 33.41 | 40.55 | 45.07 | |
| Workday Inc. | 29.52 | 36.59 | 19.79 | 49.17 | 40.57 | 74.21 | |
| P/FCFE, Sector | |||||||
| Software & Services | — | 39.85 | 32.90 | 31.13 | 33.80 | 26.81 | |
| P/FCFE, Industry | |||||||
| Information Technology | — | 36.63 | 33.18 | 26.93 | 27.31 | 23.40 | |
Based on: 10-K (reporting date: 2025-01-31), 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,831,000,000 ÷ 961,000,000 = 11.27
4 Closing price as at the filing date of Salesforce Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 291.97 ÷ 11.27 = 25.91
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trend from January 2020 through January 2024, increasing from $169.60 to $303.77. However, there was a noticeable decline from January 2024 to January 2025, with the price dropping to $291.97.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share demonstrated volatility across the periods. It increased steadily from $3.37 in January 2020 to $4.30 in January 2021, then showed a sharp rise to $11.95 in January 2022. This was followed by a decline to $5.89 in January 2023, before increasing again to $7.92 in January 2024 and further rising to $11.27 in January 2025. Overall, the FCFE per share more than tripled during the five-year span, albeit with fluctuations.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio declined significantly from 50.4 in January 2020 to a low of 16.56 in January 2022, indicating a period during which the share price was relatively low compared to the FCFE per share. Following this trough, the ratio rose to 38.33 by January 2024, reflecting a valuation increase relative to FCFE. By January 2025, the ratio had decreased again to 25.91, signaling a moderate valuation adjustment in the context of increasing FCFE per share.
- Overall Insights
- The data indicates that while the share price experienced volatility, the underlying free cash flow to equity per share increased notably over the analyzed period. The fluctuations in the P/FCFE ratio suggest periods of changing market valuation multiples, possibly reflecting shifts in investor sentiment or company performance expectations. The decline in share price between January 2024 and January 2025 alongside an increase in FCFE per share and a decrease in P/FCFE ratio points toward a potential undervaluation or market adjustment relative to the company’s cash generating ability.