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

salesforce.com inc. (NYSE:CRM)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

salesforce.com inc., FCFE calculation

US$ in millions

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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)
Net noncash charges 4,535  2,460  2,246  1,841  1,348  1,297 
Changes in assets and liabilities, net of business combinations (330) (172) 365  142  312  139 
Net cash provided by operating activities 4,331  3,398  2,738  2,162  1,613  1,174 
Capital expenditures (643) (595) (534) (464) (284) (290)
Proceeds from issuance of debt, net —  2,966  —  1,244  —  297 
Principal payments on financing obligations (173) (131) (106) (98) (82) (71)
Repayments of debt (503) (1,529) (323) (550) (300) (854)
Free cash flow to equity (FCFE) 3,012  4,109  1,775  2,294  946  256 

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
FCFE Free cash flow to equity is the cash flow available to salesforce.com inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. salesforce.com inc.’s FCFE increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Price to FCFE Ratio, Current

salesforce.com inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 915,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 3,012 
FCFE per share 3.29
Current share price (P) 225.77
Valuation Ratio
P/FCFE 68.59
Benchmarks
P/FCFE, Competitors1
Adobe Inc. 42.66
Alphabet Inc. 41.88
Autodesk Inc. 48.34
Facebook Inc. 37.84
International Business Machines Corp. 3.68
Intuit Inc. 18.90
Microsoft Corp. 47.06
Oracle Corp. 6.59
ServiceNow Inc. 117.51
P/FCFE, Sector
Software & Computer Services 35.35
P/FCFE, Industry
Technology 33.09

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

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.com inc., historical P/FCFE calculation, comparison to benchmarks

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Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015
No. shares of common stock outstanding1 895,000,000 771,000,000 731,500,000 707,500,000 670,900,000 650,600,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 3,012  4,109  1,775  2,294  946  256 
FCFE per share3 3.37 5.33 2.43 3.24 1.41 0.39
Share price1, 4 169.60 155.06 127.41 82.50 70.49 64.56
Valuation Ratio
P/FCFE5 50.40 29.09 52.51 25.44 50.00 164.03
Benchmarks
P/FCFE, Competitors6
Adobe Inc. 41.36 41.90 19.87 35.56 27.41 19.13
Alphabet Inc. 32.39 34.99 31.54 22.63 29.29
Autodesk Inc. 24.07 41.92 609.14 197.14 11.80 22.14
Facebook Inc. 28.91 30.97 32.08 33.48 52.13
International Business Machines Corp. 4.39 11.07 8.55 10.60 9.60
Intuit Inc. 17.36 34.61 29.29 42.22 21.01 18.76
Microsoft Corp. 42.74 30.77 37.57 8.86 10.12 10.15
Oracle Corp. 6.27 22.31 10.78 8.16 11.68 5.69
ServiceNow Inc. 74.57 327.16 22.36 410.08 38.70
P/FCFE, Sector
Software & Computer Services 25.41 28.10 15.99 16.26 14.74
P/FCFE, Industry
Technology 21.30 23.80 13.64 12.91 10.32

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 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,012,000,000 ÷ 895,000,000 = 3.37

4 Closing price as at the filing date of salesforce.com inc.’s Annual Report.

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 169.60 ÷ 3.37 = 50.40

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. salesforce.com inc.’s P/FCFE ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.