Discounted Cash Flow (DCF) Analysis Levered

Salesforce, Inc. (CRM)

$298.45

-1.94 (-0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 190.34 | 298.45 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 13,28217,09821,25226,49231,35238,878.6448,212.1859,786.4274,139.2891,937.81
Revenue (%)
Operating Cash Flow 3,3984,3314,8016,0007,1119,240.2311,458.5214,209.3517,620.5821,850.73
Operating Cash Flow (%)
Capital Expenditure -595-643-710-717-798-1,308.89-1,623.12-2,012.78-2,495.98-3,095.19
Capital Expenditure (%)
Free Cash Flow 2,8033,6884,0915,2836,3137,931.349,835.4012,196.5815,124.5918,755.54

Weighted Average Cost Of Capital

Share price $ 298.45
Beta 1.279
Diluted Shares Outstanding 997
Cost of Debt
Tax Rate 68.48
After-tax Cost of Debt 1.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.338
Total Debt 14,088
Total Equity 297,554.65
Total Capital 311,642.65
Debt Weighting 4.52
Equity Weighting 95.48
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 13,28217,09821,25226,49231,35238,878.6448,212.1859,786.4274,139.2891,937.81
Operating Cash Flow 3,3984,3314,8016,0007,1119,240.2311,458.5214,209.3517,620.5821,850.73
Capital Expenditure -595-643-710-717-798-1,308.89-1,623.12-2,012.78-2,495.98-3,095.19
Free Cash Flow 2,8033,6884,0915,2836,3137,931.349,835.4012,196.5815,124.5918,755.54
WACC
PV LFCF 6,563.177,403.618,351.669,421.1210,627.53
SUM PV LFCF 46,574.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.93
Free cash flow (t + 1) 19,130.65
Terminal Value 241,243.99
Present Value of Terminal Value 150,271.07

Intrinsic Value

Enterprise Value 196,845.21
Net Debt 7,072
Equity Value 189,773.21
Shares Outstanding 997
Equity Value Per Share 190.34