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Salesforce (NEOE:CRM) Cyclically Adjusted Price-to-FCF : 39.08 (As of Jun. 05, 2025)


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What is Salesforce Cyclically Adjusted Price-to-FCF?

As of today (2025-06-05), Salesforce's current share price is C$20.71. Salesforce's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2025 was C$0.53. Salesforce's Cyclically Adjusted Price-to-FCF for today is 39.08.

The historical rank and industry rank for Salesforce's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

NEOE:CRM' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 35.53   Med: 84.96   Max: 124.45
Current: 39.36

During the past years, Salesforce's highest Cyclically Adjusted Price-to-FCF was 124.45. The lowest was 35.53. And the median was 84.96.

NEOE:CRM's Cyclically Adjusted Price-to-FCF is ranked worse than
58.46% of 703 companies
in the Software industry
Industry Median: 30.14 vs NEOE:CRM: 39.36

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Salesforce's adjusted free cash flow per share data for the three months ended in Apr. 2025 was C$0.529. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is C$0.53 for the trailing ten years ended in Apr. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


Salesforce Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Salesforce's Cyclically Adjusted Price-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.

* Premium members only.

Salesforce Cyclically Adjusted Price-to-FCF Chart

Salesforce Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 91.70 74.68 43.81 58.58 56.39

Salesforce Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.74 47.36 51.28 56.39 39.99

Competitive Comparison of Salesforce's Cyclically Adjusted Price-to-FCF

For the Software - Application subindustry, Salesforce's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-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 Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Salesforce's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Salesforce's Cyclically Adjusted Price-to-FCF falls into.


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Salesforce Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Salesforce's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=20.71/0.53
=39.08

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Apr. 2025 is calculated as:

For example, Salesforce's adjusted Free Cash Flow per Share data for the three months ended in Apr. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Apr. 2025 (Change)*Current CPI (Apr. 2025)
=0.529/135.3468*135.3468
=0.529

Current CPI (Apr. 2025) = 135.3468.

Salesforce Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201507 0.027 100.691 0.036
201510 0.009 100.346 0.012
201601 0.050 99.957 0.068
201604 0.105 100.947 0.141
201607 0.017 101.524 0.023
201610 0.002 101.988 0.003
201701 0.061 102.456 0.081
201704 0.116 103.167 0.152
201707 0.021 103.278 0.028
201710 0.001 104.070 0.001
201801 0.088 104.578 0.114
201804 0.132 105.708 0.169
201807 0.028 106.324 0.036
201810 0.001 106.695 0.001
201901 0.115 106.200 0.147
201904 0.177 107.818 0.222
201907 0.025 108.250 0.031
201910 0.011 108.577 0.014
202001 0.125 108.841 0.155
202004 0.138 108.173 0.173
202007 0.027 109.318 0.033
202010 0.018 109.861 0.022
202101 0.159 110.364 0.195
202104 0.237 112.673 0.285
202107 0.013 115.183 0.015
202110 0.017 116.696 0.020
202201 0.133 118.619 0.152
202204 0.257 121.978 0.285
202207 0.010 125.002 0.011
202210 0.009 125.734 0.010
202301 0.204 126.223 0.219
202304 0.338 127.992 0.357
202307 0.049 128.974 0.051
202310 0.111 129.810 0.116
202401 0.259 130.124 0.269
202404 0.492 132.289 0.503
202407 0.062 132.708 0.063
202410 0.148 133.182 0.150
202501 0.329 134.029 0.332
202504 0.529 135.347 0.529

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Salesforce  (NEOE:CRM) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Salesforce Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Salesforce's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Salesforce Business Description

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Address
415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105
Salesforce 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.