Stock Analysis on Net
Stock Analysis on Net

Salesforce Inc. (NYSE:CRM)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Salesforce Inc., FCFE calculation

US$ in millions

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12 months ended: Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Net income 4,136 208 1,444 4,072 126 1,110
Net noncash charges 8,948 8,972 6,214 1,921 4,535 2,460
Changes in assets and liabilities, net of business combinations (2,850) (2,069) (1,658) (1,192) (330) (172)
Net cash provided by operating activities 10,234 7,111 6,000 4,801 4,331 3,398
Capital expenditures (736) (798) (717) (710) (643) (595)
Proceeds from issuance of debt, net of issuance costs — — 7,906 (20) — 2,966
Repayments of Slack Convertible Notes, net of capped call proceeds — — (1,197) — — —
Principal payments on financing obligations (629) (419) (156) (103) (173) (131)
Repayments of debt (1,182) (4) (4) (4) (503) (1,529)
Free cash flow to equity (FCFE) 7,687 5,890 11,832 3,964 3,012 4,109

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
FCFE Free cash flow to equity is the cash flow available to Salesforce Inc. 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 Inc. FCFE decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Price to FCFE Ratio, Current

Salesforce Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 956,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 7,687
FCFE per share 8.04
Current share price (P) 323.43
Valuation Ratio
P/FCFE 40.22
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.43
Adobe Inc. 34.14
Autodesk Inc. 52.41
Cadence Design Systems Inc. 71.67
CrowdStrike Holdings Inc. 93.21
International Business Machines Corp. 11.48
Intuit Inc. 39.73
Microsoft Corp. 41.61
Oracle Corp. 64.30
Palo Alto Networks Inc. 61.13
ServiceNow Inc. 77.87
Synopsys Inc. 54.29
P/FCFE, Sector
Software & Services 41.88
P/FCFE, Industry
Information Technology 51.78

Based on: 10-K (reporting date: 2024-01-31).

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

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
No. shares of common stock outstanding1 970,000,000 1,000,000,000 990,000,000 921,000,000 895,000,000 771,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 7,687 5,890 11,832 3,964 3,012 4,109
FCFE per share3 7.92 5.89 11.95 4.30 3.37 5.33
Share price1, 4 303.77 182.95 197.90 213.12 169.60 155.06
Valuation Ratio
P/FCFE5 38.33 31.06 16.56 49.52 50.40 29.09
Benchmarks
P/FCFE, Competitors6
Accenture PLC 23.91 21.03 17.91 25.76 19.01 19.50
Adobe Inc. — 41.83 21.32 34.26 41.36 41.90
Autodesk Inc. 37.55 25.55 16.66 64.43 24.07 41.92
Cadence Design Systems Inc. — 71.40 33.41 36.31 45.86 36.04
CrowdStrike Holdings Inc. 85.82 42.65 99.63 41.38 880.68 —
International Business Machines Corp. — 9.97 11.97 48.45 9.43 4.39
Intuit Inc. 38.43 38.74 13.86 86.74 17.36 34.61
Microsoft Corp. 42.11 43.32 36.73 42.54 42.74 30.77
Oracle Corp. 48.38 15.47 — 8.36 6.27 22.31
Palo Alto Networks Inc. 52.90 79.75 29.54 32.91 8.11 46.20
ServiceNow Inc. — 58.13 44.44 64.54 49.83 68.98
Synopsys Inc. — 57.04 33.41 40.55 45.07 77.64
P/FCFE, Sector
Software & Services — 32.73 30.44 33.85 25.89 22.16
P/FCFE, Industry
Information Technology — 33.47 26.69 27.52 23.46 19.14

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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,687,000,000 ÷ 970,000,000 = 7.92

4 Closing price as at the filing date of Salesforce Inc. Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 303.77 ÷ 7.92 = 38.33

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 Inc. P/FCFE ratio increased from 2022 to 2023 and from 2023 to 2024.