Salesforce, Inc.

CRM

Services-Prepackaged Software

Mkt Cap

$262.6B

PE

63.49

Debt

$10.5B

Cash

$8.472B

EV

$264.6B

FCF

$9.498B

Market Cap

$262.6B

P/E Ratio

63.49

Debt

$10.5B

Cash

$8.472B

EV

$264.6B

FCF

$9.498B

Charts data: {"Earnings":[{"time":"2015-01-30","value":-262688000},{"time":"2016-01-30","value":-47426000},{"time":"2017-01-30","value":179632000},{"time":"2018-01-30","value":127478000},{"time":"2019-01-30","value":1110000000},{"time":"2020-01-30","value":126000000},{"time":"2021-01-30","value":4072000000},{"time":"2022-01-30","value":1444000000},{"time":"2023-01-30","value":208000000},{"time":"2024-01-30","value":4136000000}],"Sales":[{"time":"2015-01-30","value":5373586000},{"time":"2016-01-30","value":6667216000},{"time":"2017-01-30","value":8391984000},{"time":"2018-01-30","value":10540000000},{"time":"2019-01-30","value":13282000000},{"time":"2020-01-30","value":17098000000},{"time":"2021-01-30","value":21252000000},{"time":"2022-01-30","value":26492000000},{"time":"2023-01-30","value":31352000000},{"time":"2024-01-30","value":34857000000}],"Net Margins":[{"time":"2015-01-30","value":-0.04888504622425323},{"time":"2016-01-30","value":-0.007113313862937694},{"time":"2017-01-30","value":0.021405188570426253},{"time":"2018-01-30","value":0.012094686907020874},{"time":"2019-01-30","value":0.08357175124228279},{"time":"2020-01-30","value":0.007369282957071003},{"time":"2021-01-30","value":0.19160549595332205},{"time":"2022-01-30","value":0.054507020987467916},{"time":"2023-01-30","value":0.006634345496300076},{"time":"2024-01-30","value":0.11865622400091803}],"Assets":[{"time":"2015-01-30","value":10692982000},{"time":"2016-01-30","value":12770772000},{"time":"2017-01-30","value":17584923000},{"time":"2018-01-30","value":21009802000},{"time":"2019-01-30","value":30737000000},{"time":"2020-01-30","value":55126000000},{"time":"2021-01-30","value":66301000000},{"time":"2022-01-30","value":95209000000},{"time":"2023-01-30","value":98849000000},{"time":"2024-01-30","value":99823000000}],"Stockholders Equity":[{"time":"2015-01-30","value":3975183000},{"time":"2016-01-30","value":5002869000},{"time":"2017-01-30","value":7500127000},{"time":"2018-01-30","value":9388496000},{"time":"2019-01-30","value":15605000000},{"time":"2020-01-30","value":33885000000},{"time":"2021-01-30","value":41493000000},{"time":"2022-01-30","value":58131000000},{"time":"2023-01-30","value":58359000000},{"time":"2024-01-30","value":59646000000}],"ROE":[{"time":"2015-01-30","value":-0.06608198918137857},{"time":"2016-01-30","value":-0.009479760513417401},{"time":"2017-01-30","value":0.023950527771063077},{"time":"2018-01-30","value":0.013578106653078405},{"time":"2019-01-30","value":0.07113104774110862},{"time":"2020-01-30","value":0.0037184594953519256},{"time":"2021-01-30","value":0.09813703516255753},{"time":"2022-01-30","value":0.024840446577557584},{"time":"2023-01-30","value":0.003564146061447249},{"time":"2024-01-30","value":0.06934245381081715}],"ROA":[{"time":"2015-01-30","value":-0.013078484561182279},{"time":"2016-01-30","value":0.01070914115450499},{"time":"2017-01-30","value":0.006503923844306853},{"time":"2018-01-30","value":0.013757911664279369},{"time":"2019-01-30","value":0.03699124833262843},{"time":"2020-01-30","value":0.014802452563218807},{"time":"2021-01-30","value":0.04028596853742779},{"time":"2022-01-30","value":0.01609091577476919},{"time":"2023-01-30","value":0.010419933433823306},{"time":"2024-01-30","value":0.05019885196798333}]}

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer service and support at scale. In addition, its platform offering comprise a flexible platform that enables companies of various sizes, locations, and industries to build business apps with drag-and-drop tools; online learning platform that allows anyone to learn in-demand Salesforce skills; and Slack, a system of engagement. The company's marketing services enables companies to plan, personalize, and optimize customer marketing journey and real time personalization and optimization; and commerce services, which empowers shopping experience across various points of commerce, such as mobile, web, social, and stores and provides click-to-code tools that offers customers to build and deploy solutions. Further, its analytics offering includes Tableau, an end-to-end analytics solution for range of enterprise use cases and intelligent analytics with advanced AI models, spot trends, predict outcomes, timely recommendations, and take action from any device; and integration service including MuleSoft, an easy to connect data from any system to deliver connected experiences. Additionally, the company provides genie customer data cloud, a hyperscale real-time data platform that powers the customer 360 platform; vertical services to meet the needs of customers in industries, such as financial services, healthcare and life sciences, manufacturing and others; and offers salesforce easy for small and medium-sized businesses. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California.

Sector

10-Q
10/31/23
10-Q
7/31/23
10-Q
4/30/23
10-K
1/31/23
10-Q
10/31/22
10-Q
7/31/22
10-Q
4/30/22
10-K
1/31/22
10-Q
10/31/21
10-Q
7/31/21

DCF

Discounted Cash Flow Valuation of Salesforce, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$9.498B	$12.05B	$15B	$18.3B	$21.89B	$25.64B	$29.42B	$33.04B	$36.3B	$38.99B	$40.94B	$409.4B
DCF		$10.48B	$11.34B	$12.03B	$12.51B	$12.75B	$12.72B	$12.42B	$11.87B	$11.08B	$10.12B	$101.2B
Value	$218.5B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 38%

Earnings Stability 7.7%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	01-2016	01-2017	01-2018	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Net Margin	-0.71%	2.1%	1.2%	8.4%	0.74%	19%	5.5%	0.66%	12%	12%
ROA	1.1%	0.65%	1.4%	3.7%	1.5%	4%	1.6%	1%	5%	5%
ROE	-0.95%	2.4%	1.4%	7.1%	0.37%	9.8%	2.5%	0.36%	6.9%	6.9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +7.71%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.1%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +2.81%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.08%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +4.51%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.24%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	01-2016	01-2017	01-2018	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Debt FCF	0.92	1.18	1.25	1.14	0.73	0.66	2.02	1.88	1.11	1.11
Debt Equity	0.22	0.27	0.29	0.21	0.08	0.06	0.18	0.20	0.18	0.18
MIN
Graham Stability	-	-	-	100%	27%	100%	82%	11%	100%	11%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.11.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.13.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.11.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	01-2017	01-2019	01-2021	01-2023	Trend
Revenue	23%	21%	18%	11%	-1.3%
Net Income	57%	30%	0.52%	1.9K%	150%
Stockholders Equity	34%	31%	13%	2.2%	-4.3%
FCF	28%	28%	32%	50%	-0.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +21.28%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.3%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +30.09%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +145.14%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +30.76%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -4.28%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +27.64%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.4%.