CRM
Salesforce · Information Technology · Application Software
$209.06
52w 146.32 – 269.11
20y monthly, adjusted
Mkt cap
$171.2B
P/E
22.6
P/FCF
11.7
FCF yield
8.5%
ROE
12.6%
Shldr yield
8.4%
div 0.9% + bb 7.5%
What today's price assumes
At $171.2B, the market is pricing in 0.4% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 26.4% per year — expectations look undemanding relative to history.
Simple DCF per-share range: $268 · $601 · $866 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 31.9× across 19 years, CRM would trade near $584/share (25th–75th percentile: $478–$649); it trades at 11.4× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+9.8%
Rev 5y
+14.3%
Rev 10y
+20.1%
EPS 5y
+12.2%
EPS 10y
—
FCF 5y
+28.6%
FCF 10y
+26.4%
Fundamentals
Fiscal 2008–2026, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q1'27 | $11.1B | +13.3% | $2.1B | +36.7% | 2.42 | $6.7B |
| Q4'26 * | $11.2B | +12.1% | $1.9B | +13.8% | 2.06 | $5.5B |
| Q3'26 | $10.3B | +8.6% | $2.1B | +36.6% | 2.19 | $2.3B |
| Q2'26 | $10.2B | +9.8% | $1.9B | +32.1% | 1.96 | $740.0M |
| Q1'26 | $9.8B | +7.6% | $1.5B | +0.5% | 1.59 | $6.5B |
| Q4'25 * | $10.0B | +7.6% | $1.7B | +18.1% | 1.75 | $4.0B |
| Q3'25 | $9.4B | +8.3% | $1.5B | +24.8% | 1.58 | $2.0B |
| Q2'25 | $9.3B | +8.4% | $1.4B | +12.8% | 1.47 | $892.0M |
| Q1'25 | $9.1B | +10.7% | $1.5B | +670.4% | 1.56 | $6.2B |
| Q4'24 * | $9.3B | +10.8% | $1.4B | — | 1.47 | $3.4B |
| Q3'24 | $8.7B | +11.3% | $1.2B | +482.9% | 1.25 | $1.5B |
| Q2'24 | $8.6B | +11.4% | $1.3B | +1763.2% | 1.28 | $808.0M |
| Q1'24 | $8.2B | +11.3% | $199.0M | +610.7% | 0.20 | $4.5B |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +9.8% | +14.3% | +20.1% | +24.0% |
| Operating cash flow | +28.2% | +25.6% | +24.5% | +26.2% |
| Free cash flow | +31.6% | +28.6% | +26.4% | +27.7% |
| EPS (diluted) | +233.7% | +12.2% | +32.2% | +32.2% |
| Equity | +0.4% | +7.3% | +28.0% | +29.1% |
| LT debt | +3.5% | +31.3% | +36.3% | — |
| Diluted shares | −1.4% | +0.6% | +3.7% | +3.9% |
| Stock price | −1.3% | −4.3% | +10.4% | +13.4% |
$100, 3 years ago
$96vs $176 in SPY
-1.3% vs 20.7%/yr
$100, 5 years ago
$80vs $181 in SPY
-4.3% vs 12.6%/yr
$100, 10 years ago
$268vs $412 in SPY
10.4% vs 15.2%/yr
$100, 15 years ago
$661vs $813 in SPY
13.4% vs 15.0%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$-0.77
−$12.6B created / $16.3B retained
Last 10 years
$6.33
$141.2B created / $22.3B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
21.6%
OCF ÷ (equity + debt)
OCF / EV yield
8.7%
MC vs 10× OCF
1.13
≤1 = priced under 10× OCF
Debt / FCF
0.7y
SBC / FCF
24.4%
Owner earnings
$10.9B
OCF − capex − SBC
OE yield
6.5%
Share count 5y
+3.8%
per year; negative = buybacks
Capital intensity
—
net PP&E ÷ revenue
Sales efficiency
$0.05
new PP&E per $1 new revenue, 5y
Growth engine (5y): reinvested 47.2% of operating cash flow at an incremental return of 42.0% — an organically fundable growth rate of about 19.8% per year (growth ≈ reinvestment rate × incremental ROIC).
Checklist
24 of 27 checks pass · 89%. Checks with structurally missing inputs are excluded.
Growth & Consistency
7/7
- pass
Revenue growth
14.3% · 5y CAGR ≥ 5%
- pass
EPS growth
12.2% · 5y CAGR ≥ 5%
- pass
FCF growth
28.6% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
9 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- pass
Profitable every year
10 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
25.6% vs 14.3% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
7/7
- pass
Net margin
18.0% · ≥ 8%
- pass
Operating margin
20.1% · ≥ 10%
- pass
Gross margin stable or rising
77.7% vs 73.3% · no drop > 2 pts over 3y
- pass
Return on equity
12.6% · ≥ 12%
- pass
Cash ROIC
21.6% · ≥ 12%
- pass
FCF margin
34.7% · ≥ 5%
- pass
Earnings back their cash
OCF $15.0B vs NI $7.5B · OCF ≥ net income (latest FY)
Balance Sheet
5/5
- pass
Debt payable from cash flow
0.7y · LT debt ≤ 3× FCF
- pass
Cash cushion
70% · cash ≥ 50% of LT debt
- pass
Leverage
0.18 · LT debt ≤ 1.5× equity
- pass
Equity positive and compounding
$59.1B · equity > 0 and grew over ~5y
- pass
Interest burden
4% · interest ≤ 15% of operating income
Capital Allocation
1/4
- fail
Share count flat or shrinking
3.8% · ≤ +0.5%/yr over ~5y
- fail
Stock comp restrained
24% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
98% · dividends + buybacks ≤ 100% of FCF
- fail
Repurchases are a habit
4 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
4/4
- pass
FCF yield
8.5% · ≥ 3%
- pass
Earnings multiple
22.6 · P/E ≤ 25
- pass
Price asks less than history delivered
0.4% vs 26.4% · implied FCF growth ≤ historical FCF CAGR
- pass
Shareholder yield
8.4% · dividends + buybacks ≥ 2% of market cap
Red flags
Mechanical checks — a flag is a question to investigate, not a verdict
Shareholder dilution
Diluted share count has grown by more than 2% per year over ~5 years.
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 41,525 | 32,255 | 8,331 | 7,457 | 7.80 | 14,996 | 594 | 14,402 | 1,587 | 12,596 | 3,509 | 7,327 | 10,439 | 59,142 | 956 |
| 2025 | 37,895 | 29,252 | 7,205 | 6,197 | 6.36 | 13,092 | 658 | 12,434 | 1,537 | 7,829 | 3,183 | 8,848 | 8,433 | 61,173 | 974 |
| 2024 | 34,857 | 26,316 | 5,011 | 4,136 | 4.20 | 10,234 | 736 | 9,498 | 0 | 7,620 | 2,787 | 8,472 | 8,427 | 59,646 | 984 |
| 2023 | 31,352 | 22,992 | 1,030 | 208 | 0.21 | 7,111 | 798 | 6,313 | 0 | 4,000 | 3,279 | 7,016 | 9,419 | 58,359 | 997 |
| 2022 | 26,492 | 19,466 | 548 | 1,444 | 1.48 | 6,000 | 717 | 5,283 | — | 0 | 2,779 | 5,464 | 10,592 | 58,131 | 974 |
| 2021 | 21,252 | 15,814 | 455 | 4,072 | 4.38 | 4,801 | 710 | 4,091 | — | 0 | 2,190 | 6,195 | 2,673 | 41,493 | 930 |
| 2020 | 17,098 | 12,863 | 297 | 126 | 0.15 | 4,331 | 643 | 3,688 | — | — | 1,785 | 4,145 | 2,673 | 33,885 | 850 |
| 2019 | 13,282 | 9,831 | 535 | 1,110 | 1.43 | 3,398 | 595 | 2,803 | — | — | 1,283 | 2,669 | 3,173 | 15,605 | 775 |
| 2018 | 10,540 | 7,767 | 454 | 360 | 0.49 | 2,738 | 534 | 2,204 | — | — | 997 | 2,543 | 695 | 10,376 | 735 |
| 2017 | 8,437 | 6,203 | 218 | 323 | 0.46 | 2,162 | 464 | 1,698 | — | — | 820 | 1,607 | 2,008 | 8,230 | 700 |
| 2016 | 6,667 | 5,013 | 115 | -47 | -0.07 | 1,672 | 284 | 1,388 | — | — | 594 | 1,158 | — | 5,003 | 662 |
| 2015 | 5,374 | 4,084 | -146 | -263 | -0.42 | 1,181 | 290 | 891 | — | — | 565 | 908 | — | 3,975 | 624 |
| 2014 | 4,071 | 3,103 | -286 | -232 | -0.39 | 875 | 299 | 576 | — | — | 503 | 782 | 255 | 3,039 | 598 |
| 2013 | 3,050 | 2,367 | -111 | -270 | -0.48 | 737 | 176 | 561 | — | — | 379 | 747 | 0 | 2,318 | 565 |
| 2012 | 2,267 | 1,778 | -35 | -12 | -0.02 | 592 | 152 | 440 | — | — | 229 | 607 | — | 1,587 | 541 |
| 2011 | 1,657 | 1,333 | 97 | 64 | 0.12 | 459 | 91 | 368 | — | — | 120 | 424 | — | 1,276 | 541 |
| 2010 | 1,306 | 1,048 | 115 | 81 | 0.16 | 271 | 50 | 221 | — | — | 89 | 1,011 | — | 1,044 | 508 |
| 2009 | 1,077 | 856 | 64 | 43 | 0.09 | 230 | 61 | 168 | — | — | 77 | 484 | — | 672 | 496 |
| 2008 | 749 | 577 | 20 | 18 | 0.04 | 204 | 44 | 161 | — | — | 55 | 279 | — | 461 | 485 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.