EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Salesforce's Enterprise Value is $263,340 Mil.
Salesforce's Free Cash Flow for the trailing twelve months (TTM) ended in Jan. 2024 was $9,498 Mil. Therefore, Salesforce's EV-to-FCF for today is 27.73.
The historical rank and industry rank for Salesforce's EV-to-FCF or its related term are showing as below:
CRM'
s EV-to-FCF Range Over the Past 10 Years
Min: 23.19 Med: 41.13 Max: 70.96
Current: 27.73
During the past 13 years, the highest EV-to-FCF of Salesforce was 70.96. The lowest was 23.19. And the median was 41.13.
CRM's EV-to-FCF is ranked worse than 61.31% of 1517
companies
in the Software industry
Industry Median: 21.17
vs CRM: 27.73
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
As of today (2024-04-27), Salesforce's stock price is $274.29.
Salesforce's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $4.200. Therefore, Salesforce's PE Ratio for today is 65.31.
Salesforce EV-to-FCF Historical Data
The historical data trend for Salesforce's EV-to-FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Salesforce's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Salesforce's EV-to-FCF Distribution in the Software Industry
For the Software industry and Technology sector, Salesforce's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Salesforce's EV-to-FCF falls into.
Salesforce EV-to-FCF Calculation
Salesforce's EV-to-FCF for today is calculated as:
Salesforce's current Enterprise Value is $263,340 Mil.
Salesforce's Free Cash Flow for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $9,498 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Salesforce (NYSE:CRM) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
Salesforce's share price for today is $274.29.
Salesforce's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.200.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Salesforce EV-to-FCF Related Terms
Thank you for viewing the detailed overview of Salesforce's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Salesforce Inc provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
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