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CRM (Salesforce) Cyclically Adjusted Price-to-FCF : 44.44 (As of May. 01, 2025)


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What is Salesforce Cyclically Adjusted Price-to-FCF?

As of today (2025-05-01), Salesforce's current share price is $269.33. Salesforce's Cyclically Adjusted FCF per Share for the quarter that ended in Jan. 2025 was $6.06. Salesforce's Cyclically Adjusted Price-to-FCF for today is 44.44.

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: 35.53   Med: 85.35   Max: 124.45
Current: 44.35

During the past years, Salesforce's highest Cyclically Adjusted Price-to-FCF was 124.45. The lowest was 35.53. And the median was 85.35.

CRM's Cyclically Adjusted Price-to-FCF is ranked worse than
64.29% of 700 companies
in the Software industry
Industry Median: 29.28 vs CRM: 44.35

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. 2025 was $3.930. 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 $6.06 for the trailing ten years ended in Jan. 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
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 58.58 49.74 47.36 51.28 56.39

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
=269.33/6.06
=44.44

* 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. 2025 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=3.93/134.0288*134.0288
=3.930

Current CPI (Jan. 2025) = 134.0288.

Salesforce Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201504 0.359 99.824 0.482
201507 0.363 100.691 0.483
201510 0.124 100.346 0.166
201601 0.600 99.957 0.805
201604 1.409 100.947 1.871
201607 0.222 101.524 0.293
201610 0.020 101.988 0.026
201701 0.790 102.456 1.033
201704 1.486 103.167 1.931
201707 0.278 103.278 0.361
201710 0.019 104.070 0.024
201801 1.219 104.578 1.562
201804 1.782 105.708 2.259
201807 0.372 106.324 0.469
201810 0.009 106.695 0.011
201901 1.485 106.200 1.874
201904 2.277 107.818 2.831
201907 0.325 108.250 0.402
201910 0.146 108.577 0.180
202001 1.639 108.841 2.018
202004 1.682 108.173 2.084
202007 0.342 109.318 0.419
202010 0.229 109.861 0.279
202101 2.150 110.364 2.611
202104 3.252 112.673 3.868
202107 0.182 115.183 0.212
202110 0.238 116.696 0.273
202201 1.808 118.619 2.043
202204 3.494 121.978 3.839
202207 0.131 125.002 0.140
202210 0.115 125.734 0.123
202301 2.609 126.223 2.770
202304 4.300 127.992 4.503
202307 0.637 128.974 0.662
202310 1.392 129.810 1.437
202401 3.319 130.124 3.419
202404 6.177 132.289 6.258
202407 0.776 132.708 0.784
202410 1.844 133.182 1.856
202501 3.930 134.029 3.930

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 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 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
Parker Harris director, officer: Co-Founder and CTO THE LANDMARK @ ONE MARKET, SUITE 300, SAN FRANCISCO CA 94105
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
Oscar Munoz director
Sabastian Niles officer: President and CLO 415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Miguel Milano officer: President and CRO 415 MISSION ST, 3RD FLOOR, SAN FRANCISCO CA 94105
Brian Millham officer: President and COO 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 90403
Amy E Weaver officer: EVP, General Counsel THE LANDMARK @ ONE MARKET STREET #300, SAN FRANCISCO CA 94105
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
G Mason Morfit director, other: See Remarks ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Marc Benioff director, officer: Chairman of the Board & CEO 50 FREMONT STREET, SAN FRANCISCO CA 94105
Webb Maynard G Jr director 16541 CYPRESS WAY, LOS GATOS CA 95030
Craig Conway director SALESFORCE TOWER, 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Brent Hyder officer: President/Chief People Officer 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Neelie Kroes director VAN BRONCKHORSTLAAN, 2242 PZ WASSENAAR, NETHERLANDS P8 99999