Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

salesforce.com inc. (NYSE:CRM)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level


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

salesforce.com inc., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Net income (loss) 126  1,110  127  180  (47) (263)
Add: Income tax expense 580  (127) 75  (154) 112  50 
Earnings before tax (EBT) 706  983  202  25  64  (213)
Add: Interest expense 131  154  87  89  72  73 
Earnings before interest and tax (EBIT) 837  1,137  289  114  137  (140)
Add: Depreciation and amortization 2,135  982  784  663  553  488 
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,972  2,119  1,073  777  690  348 

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

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.com inc.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

salesforce.com inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 168,200 
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,972 
Valuation Ratio
EV/EBITDA 56.59
Benchmarks
EV/EBITDA, Competitors1
Adobe Inc. 51.83
Alphabet Inc. 17.18
Autodesk Inc. 111.07
Facebook Inc. 19.97
International Business Machines Corp. 9.11
Intuit Inc. 36.45
Microsoft Corp. 25.88
Oracle Corp. 11.68
ServiceNow Inc. 221.21
EV/EBITDA, Sector
Software & Computer Services 21.43
EV/EBITDA, Industry
Technology 18.46

Based on: 10-K (filing date: 2020-03-05).

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.com inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 146,522  118,385  90,398  58,168  47,244  42,378 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 2,972  2,119  1,073  777  690  348 
Valuation Ratio
EV/EBITDA3 49.30 55.87 84.25 74.85 68.47 121.75
Benchmarks
EV/EBITDA, Competitors4
Adobe Inc. 41.16 37.27 36.77 28.22 33.16
Alphabet Inc. 17.07 15.69 19.10 15.51 16.21
Autodesk Inc. 69.31 335.51 75.90 52.55
Facebook Inc. 17.76 14.64 21.98 23.48 35.80
International Business Machines Corp. 10.23 9.54 10.76 11.72 7.85
Intuit Inc. 34.27 31.25 21.97 19.58 22.81
Microsoft Corp. 17.10 15.58 14.93 13.70 12.37
Oracle Corp. 11.54 11.83 9.50 12.73 9.86 9.80
ServiceNow Inc. 187.17 260.48 1,506.85
EV/EBITDA, Sector
Software & Computer Services 17.73 15.68 17.79 15.60 14.87
EV/EBITDA, Industry
Technology 15.02 12.97 14.06 12.25 10.67

Based on: 10-K (filing date: 2020-03-05), 10-K (filing date: 2019-03-08), 10-K (filing date: 2018-03-09), 10-K (filing date: 2017-03-06), 10-K (filing date: 2016-03-07), 10-K (filing date: 2015-03-06).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 146,522 ÷ 2,972 = 49.30

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.com inc.’s EV/EBITDA ratio decreased from 2018 to 2019 and from 2019 to 2020.