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Salesforce (Salesforce) Cyclically Adjusted Price-to-FCF : 57.14 (As of Apr. 27, 2024)


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What is Salesforce Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Salesforce's current share price is $274.29. Salesforce's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2024 was $4.80. Salesforce's Cyclically Adjusted Price-to-FCF for today is 57.14.

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

CRM' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 35.24   Med: 89.15   Max: 135.3
Current: 57.14

During the past years, Salesforce's highest Cyclically Adjusted Price-to-FCF was 135.30. The lowest was 35.24. And the median was 89.15.

CRM's Cyclically Adjusted Price-to-FCF is ranked worse than
69.85% of 670 companies
in the Software industry
Industry Median: 28.305 vs CRM: 57.14

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 Jan. 2024 was $3.319. 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 $4.80 for the trailing ten years ended in Jan. 2024.

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 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 89.73 90.88 74.11 43.52 58.56

Salesforce Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 43.52 46.21 51.46 44.38 58.56

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.



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
=274.29/4.8
=57.14

* 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 Jan. 2024 is calculated as:

For example, Salesforce's adjusted Free Cash Flow per Share data for the three months ended in Jan. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=3.319/129.4194*129.4194
=3.319

Current CPI (Jan. 2024) = 129.4194.

Salesforce Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201404 0.674 100.023 0.872
201407 0.283 100.520 0.364
201410 -0.105 100.176 -0.136
201501 0.580 98.604 0.761
201504 0.359 99.824 0.465
201507 0.363 100.691 0.467
201510 0.124 100.346 0.160
201601 0.600 99.957 0.777
201604 1.409 100.947 1.806
201607 0.222 101.524 0.283
201610 0.020 101.988 0.025
201701 0.790 102.456 0.998
201704 1.486 103.167 1.864
201707 0.278 103.278 0.348
201710 0.019 104.070 0.024
201801 1.219 104.578 1.509
201804 1.782 105.708 2.182
201807 0.372 106.324 0.453
201810 0.009 106.695 0.011
201901 1.485 106.200 1.810
201904 2.277 107.818 2.733
201907 0.325 108.250 0.389
201910 0.146 108.577 0.174
202001 1.639 108.841 1.949
202004 1.682 108.173 2.012
202007 0.342 109.318 0.405
202010 0.229 109.861 0.270
202101 2.150 110.364 2.521
202104 3.252 112.673 3.735
202107 0.182 115.183 0.204
202110 0.238 116.696 0.264
202201 1.808 118.619 1.973
202204 3.494 121.978 3.707
202207 0.131 125.002 0.136
202210 0.115 125.734 0.118
202301 2.609 126.223 2.675
202304 4.300 127.992 4.348
202307 0.637 128.974 0.639
202310 1.392 129.810 1.388
202401 3.319 129.419 3.319

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  (NYSE: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 (Salesforce) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Salesforce Inc (NYSE:CRM) » Definitions » Cyclically Adjusted Price-to-FCF
Address
415 Mission Street, 3rd Floor, Salesforce Tower, San Francisco, CA, USA, 94105
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.
Executives
Brian Millham officer: President and COO 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 90403
Sundeep G. Reddy officer: EVP & Chief Accounting Officer 6555 NORTH STATE HWY 161, IRVING TX 75039
Srinivas Tallapragada officer: President, Technology THE LANDMARK AT ONE MARKET STREET, #300, SAN FRANCISCO CA 94105
Amy E Weaver officer: EVP, General Counsel THE LANDMARK @ ONE MARKET STREET #300, SAN FRANCISCO CA 94105
Parker Harris director, officer: Co-Founder and CTO THE LANDMARK @ ONE MARKET, SUITE 300, SAN FRANCISCO CA 94105
Marc Benioff director, officer: Chairman of the Board & CEO 50 FREMONT STREET, SAN FRANCISCO CA 94105
Brent Hyder officer: President/Chief People Officer 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Miguel Milano officer: President and CRO 415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Sabastian Niles officer: President and CLO 415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Neelie Kroes director VAN BRONCKHORSTLAAN, 2242 PZ WASSENAAR, NETHERLANDS P8 99999
Valueact Capital Management, Llc director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
J. Mehra Sachin director HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Arnold W Donald director C/O CARNIVAL CORPORATION, 3655 N.W. 87TH AVENUE, MIAMI FL 33178
G Mason Morfit director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Valueact Holdings Ii, L.p. director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, FOURTH FLOOR, SAN FRANCISCO CA 94129

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