Discounted Cash Flow (DCF) Analysis Levered

Salesforce, Inc. (CRM)

$169.32

-1.72 (-1.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 218.30 | 169.32 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 10,480.0113,28217,09821,25226,49233,407.6642,128.6353,126.1966,994.6384,483.39
Revenue (%)
Operating Cash Flow 2,737.963,3984,3314,8016,0008,170.0910,302.8712,992.4016,384.0320,661.04
Operating Cash Flow (%)
Capital Expenditure -534.03-595-643-710-717-1,295.11-1,633.19-2,059.54-2,597.17-3,275.16
Capital Expenditure (%)
Free Cash Flow 2,203.942,8033,6884,0915,2836,874.988,669.6710,932.8713,786.8617,385.88

Weighted Average Cost Of Capital

Share price $ 169.32
Beta 1.129
Diluted Shares Outstanding 974
Cost of Debt
Tax Rate 5.74
After-tax Cost of Debt 4.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.945
Total Debt 13,981
Total Equity 164,917.68
Total Capital 178,898.68
Debt Weighting 7.82
Equity Weighting 92.18
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 10,480.0113,28217,09821,25226,49233,407.6642,128.6353,126.1966,994.6384,483.39
Operating Cash Flow 2,737.963,3984,3314,8016,0008,170.0910,302.8712,992.4016,384.0320,661.04
Capital Expenditure -534.03-595-643-710-717-1,295.11-1,633.19-2,059.54-2,597.17-3,275.16
Free Cash Flow 2,203.942,8033,6884,0915,2836,874.988,669.6710,932.8713,786.8617,385.88
WACC
PV LFCF 4,188.444,863.115,646.456,555.977,612
SUM PV LFCF 43,624.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.61
Free cash flow (t + 1) 17,733.60
Terminal Value 268,284.41
Present Value of Terminal Value 177,519.62

Intrinsic Value

Enterprise Value 221,144.60
Net Debt 8,517
Equity Value 212,627.60
Shares Outstanding 974
Equity Value Per Share 218.30