DCF Tool

CRM

Salesforce Inc – Software Publishers
Salesforce, the global CRM leader, empowers companies of every size and industry to digitally transform and create a 360° view of their customers.
Analysis Results
Intrinsic Value $104.59
Latest Price $159.65
Relative Value 53% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 56.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 56.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.32 2.09
2024 3.65 2.94
2025 5.72 4.14
2026 8.98 5.84
2027 14.1 8.22
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 153 billion. This corresponds to a present value of 80.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 23.2 billion. Adding in the terminal value gives a total present value of 104 billion.

There are presently 990.0 million outstanding shares, so the intrinsic value per share is 104.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 22,850,000,000
Current Cash 10,537,000,000
Current Liabilities 21,788,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -9,475,000,000
Change in NCWC -1,670,000,000
EBIT 548,000,000
Tax Provision 88,000,000
Depreciation and Amortization 3,298,000,000
Capital Expenditure -717,000,000
Unlevered Free Cash Flow 1,427,522,193
Current Assets 21,889,000,000
Current Cash 11,966,000,000
Current Liabilities 17,728,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -7,805,000,000
Change in NCWC -976,000,000
EBIT 455,000,000
Tax Provision -1,511,000,000
Depreciation and Amortization 2,846,000,000
Capital Expenditure -710,000,000
Unlevered Free Cash Flow 1,615,000,000
Current Assets 15,963,000,000
Current Cash 7,947,000,000
Current Liabilities 14,845,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,829,000,000
Change in NCWC -1,918,000,000
EBIT 463,000,000
Tax Provision 580,000,000
Depreciation and Amortization 2,135,000,000
Capital Expenditure -643,000,000
Unlevered Free Cash Flow -343,368,271
Current Assets 10,683,000,000
Current Cash 4,342,000,000
Current Liabilities 11,255,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) -4,911,000,000
Change in NCWC -677,404,000
EBIT 535,000,000
Tax Provision -127,000,000
Depreciation and Amortization 962,000,000
Capital Expenditure -595,000,000
Unlevered Free Cash Flow 224,596,000
Current Assets 9,290,371,000
Current Cash 4,521,705,000
Current Liabilities 10,129,518,000
Current Debt 1,127,256,000
Non-Cash Working Capital (NCWC) -4,233,596,000
Change in NCWC -782,777,000
EBIT 235,768,000
Tax Provision 74,630,000
Depreciation and Amortization 752,600,000
Capital Expenditure -534,027,000
Unlevered Free Cash Flow -415,495,224
Current Assets 5,996,827,000
Current Cash 2,208,887,000
Current Liabilities 7,258,353,000
Current Debt 19,594,000
Non-Cash Working Capital (NCWC) -3,450,819,000
Change in NCWC -855,162,000
EBIT 64,228,000
Tax Provision -154,249,000
Depreciation and Amortization 632,245,000
Capital Expenditure -463,958,000
Unlevered Free Cash Flow -622,647,000
Current Assets 4,347,327,000
Current Cash 1,341,381,000
Current Liabilities 5,617,005,000
Current Debt 15,402,000
Non-Cash Working Capital (NCWC) -2,595,657,000
Change in NCWC -760,197,000
EBIT 78,306,000
Tax Provision 111,705,000
Depreciation and Amortization 525,750,000
Capital Expenditure -284,476,000
Unlevered Free Cash Flow -552,322,000
Current Assets 3,550,072,000
Current Cash 995,429,000
Current Liabilities 4,390,103,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,835,460,000
Change in NCWC -268,909,000
EBIT -145,633,000
Tax Provision 49,603,000
Depreciation and Amortization 448,296,000
Capital Expenditure -290,454,000
Unlevered Free Cash Flow -256,700,000
Current Assets 2,680,252,000
Current Cash 838,774,000
Current Liabilities 3,980,188,000
Current Debt 572,159,000
Non-Cash Working Capital (NCWC) -1,566,551,000
Change in NCWC -318,464,000
EBIT -286,074,000
Tax Provision -125,760,000
Depreciation and Amortization 369,423,000
Capital Expenditure -299,110,000
Unlevered Free Cash Flow -534,225,000
Current Assets 2,015,880,000
Current Cash 867,621,000
Current Liabilities 2,917,624,000
Current Debt 521,278,000
Non-Cash Working Capital (NCWC) -1,248,087,000
Change in NCWC -315,121,000
EBIT -110,710,000
Tax Provision 142,651,000
Depreciation and Amortization 216,795,000
Capital Expenditure -179,707,000
Unlevered Free Cash Flow -388,743,000

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