NYSE
CRM
Last Price
US $156.66
KEY FIGURES
MKT CAP
$129.7B
EPS
TTM
$9.24
PEG
TTM
0.54x
P/E
TTM
18.27x
P/S
TTM
3.12x
YIELD
1.08%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
10.26%
Return on equity
ROIC: 8.01%
Valuation History
53.7X
Price to Earnings
EV/EBITDA: 29.6X
Cash flow
Profit margin
14.34%
(FY vs FY)
EBITDA Y/Y
31.84%
(FY vs FY)
Cash flow Y/Y
28.62%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $156.66
65.15%
Default assumptions
EBITDA Multiple
Fair Value
Market $156.66
-44.76%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Salesforce, Inc. cash flow to debt ratio of 87.31% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Salesforce, Inc.'s free cash flow has increased 15.83% from $12.43G last year to $14.40G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Salesforce, Inc.'s debt to equity ratio is 1.22, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Salesforce, Inc.'s debt has increased relative to shareholder equity from 0.19 last year to 1.22 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Salesforce, Inc. has a net debt to EBITDA ratio of 0.75x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Salesforce, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Salesforce, Inc.'s profit margin has increased (14.55%) in the last year from 16.35% to 18.73%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Salesforce, Inc.'s short-term liabilities of $37.12G exceed its short-term assets of $28.22G, signaling financial risk
Increasing performance - ROA.
Salesforce, Inc.'s return on assets of 7.52% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Salesforce, Inc.'s return on equity of 14.95%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Salesforce, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Salesforce, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Salesforce, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Salesforce, Inc. has a free cash flow yield of 11.10%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Salesforce, Inc.'s yearly earnings has increased 20.33% since last year from $6.20G to $7.46G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Salesforce, Inc.'s yearly revenue has increased 9.58% since last year from $37.90G to $41.52G, signaling increasing performance
Increasing performance - ROIC.
ROIC 9.21% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Salesforce, Inc.'s 3-year revenue CAGR of 9.82% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Salesforce, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Salesforce, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Salesforce, Inc. is undervalued relative to its fair value price of 258.73 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Salesforce, Inc. has an earnings yield of 5.84%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Salesforce, Inc. is overvalued relative to its fair value price of 86.54 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Salesforce, Inc. has an EV/EBITDA ratio of 11.62x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Salesforce, Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Salesforce, Inc. has a price-to-book ratio of 4.02x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Salesforce, Inc. has a price-to-sales ratio of 3.03x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue