Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Salesforce Inc., FCFF calculation
US$ in millions
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).
| 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. |
Interest Paid, Net of Tax
Salesforce Inc., interest paid, net of tax calculation
US$ in millions
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).
2 2024 Calculation
Cash paid during the period for interest, tax = Cash paid during the period for interest × EITR
= 254 × 16.44% = 42
Enterprise Value to FCFF Ratio, Current
Salesforce Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 305,405) |
| Free cash flow to the firm (FCFF) | 9,710) |
| Valuation Ratio | |
| EV/FCFF | 31.45 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Accenture PLC | 25.24 |
| Adobe Inc. | 30.70 |
| Autodesk Inc. | 50.23 |
| Cadence Design Systems Inc. | 64.07 |
| CrowdStrike Holdings Inc. | 88.72 |
| International Business Machines Corp. | 17.11 |
| Intuit Inc. | 38.02 |
| Microsoft Corp. | 48.72 |
| Oracle Corp. | 39.84 |
| Palo Alto Networks Inc. | 40.17 |
| ServiceNow Inc. | 76.10 |
| Synopsys Inc. | 53.13 |
| EV/FCFF, Sector | |
| Software & Services | 45.07 |
| EV/FCFF, Industry | |
| Information Technology | 52.79 |
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.
Enterprise Value to FCFF Ratio, Historical
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 | 25.76 | 20.26 | 16.99 | 24.76 | 17.90 | 18.49 | |
| Adobe Inc. | — | 37.75 | 20.82 | 33.61 | 40.43 | 40.48 | |
| Autodesk Inc. | 36.00 | 20.48 | 27.63 | 41.13 | 23.38 | 98.38 | |
| Cadence Design Systems Inc. | — | 63.83 | 44.54 | 35.05 | 44.13 | 29.35 | |
| CrowdStrike Holdings Inc. | 81.46 | 38.65 | 96.35 | 141.44 | 807.14 | — | |
| International Business Machines Corp. | — | 15.27 | 16.47 | 13.10 | 9.35 | 12.86 | |
| Intuit Inc. | 36.79 | 31.28 | 32.85 | 48.64 | 37.90 | 33.30 | |
| Microsoft Corp. | 49.30 | 41.75 | 32.31 | 38.37 | 33.99 | 26.37 | |
| Oracle Corp. | 31.24 | 35.83 | 31.60 | 16.36 | 14.99 | 14.03 | |
| Palo Alto Networks Inc. | 34.69 | 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 | — | 35.33 | 29.55 | 32.31 | 27.29 | 23.61 | |
| EV/FCFF, Industry | |||||||
| Information Technology | — | 34.32 | 27.25 | 28.19 | 24.28 | 19.87 | |
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).
3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 290,863 ÷ 9,710 = 29.95
4 Click competitor name to see calculations.
| 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. |