Discounted Cash Flow (DCF) Analysis Levered
Salesforce, Inc. (CRM)
$169.32
-1.72 (-1.01%)
All numbers are in Millions, Currency in USD
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 | 10,480.01 | 13,282 | 17,098 | 21,252 | 26,492 | 33,407.66 | 42,128.63 | 53,126.19 | 66,994.63 | 84,483.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,737.96 | 3,398 | 4,331 | 4,801 | 6,000 | 8,170.09 | 10,302.87 | 12,992.40 | 16,384.03 | 20,661.04 |
| 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 | 2,203.94 | 2,803 | 3,688 | 4,091 | 5,283 | 6,874.98 | 8,669.67 | 10,932.87 | 13,786.86 | 17,385.88 |
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 | 10,480.01 | 13,282 | 17,098 | 21,252 | 26,492 | 33,407.66 | 42,128.63 | 53,126.19 | 66,994.63 | 84,483.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,737.96 | 3,398 | 4,331 | 4,801 | 6,000 | 8,170.09 | 10,302.87 | 12,992.40 | 16,384.03 | 20,661.04 |
| 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 | 2,203.94 | 2,803 | 3,688 | 4,091 | 5,283 | 6,874.98 | 8,669.67 | 10,932.87 | 13,786.86 | 17,385.88 |
| WACC | ||||||||||
| PV LFCF | 4,188.44 | 4,863.11 | 5,646.45 | 6,555.97 | 7,612 | |||||
| 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 |