salesforce.com inc., FCFF calculation

USD $ in millions

	12 months ended	Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Net income (loss)
	Net noncash charges
	Changes in assets and liabilities, net of business combinations
	Net cash provided by operating activities
	Cash paid during the period for interest, net of tax¹
	Capital expenditures
	Fixed assets acquired under capital leases
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the salesforce.com inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	salesforce.com inc.’s FCFF increased from 2017 to 2018 and from 2018 to 2019.

salesforce.com inc., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Cash paid during the period for interest, before tax
	Less: Cash paid during the period for interest, tax²
	Cash paid during the period for interest, net of tax

2019 Calculations

² Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= hidden × hidden = hidden

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

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Adobe Inc.
Alphabet Inc.
Facebook Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
EV/FCFF, Sector
Software & Computer Services
EV/FCFF, Industry
Technology

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

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

salesforce.com inc., historical EV/FCFF calculation, comparison to benchmarks

		Jan 31, 2019	Jan 31, 2018	Jan 31, 2017	Jan 31, 2016	Jan 31, 2015	Jan 31, 2014
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Adobe Inc.
	Alphabet Inc.
	Facebook Inc.
	International Business Machines Corp.
	Intuit Inc.
	Microsoft Corp.
	Oracle Corp.
	EV/FCFF, Sector
	Software & Computer Services
	EV/FCFF, Industry
	Technology

2019 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	salesforce.com inc.’s EV/FCFF ratio increased from 2017 to 2018 and from 2018 to 2019.

	salesforce.com inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

salesforce.com inc. (CRM)

Enterprise Value to FCFF (EV/FCFF)