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Arphra AIPlain-English read on Salesforce, Inc.’s valuationOverview
Discounted cash flow
Income / accounting-based
Multiples & assets
Scenario
Toolbox
Weighted blend
$469.66
+145.76% vs spot
Strong Buy
Spot price
$191.10
Mkt cap $156.51B
subtle cardAnalyst PT consensus
$287.00
+50.18% vs spot
subtle cardMethods covered
18 / 19
12 in blend
subtle cardFootball field
CRM · fair-value range by method
Method comparison
CRM · fair value by valuation framework
| Method | Category | Fair value | Range | vs spot | Weight | Driver | Conf. |
|---|---|---|---|---|---|---|---|
| DCF · FCFF | dcf | $927.67 | $650.17 – $1,408.97 | +385.43% | 23.4% | WACC 8.4%, g₀=25.0%, gₗ=4.3% | high |
| DCF · FCFE | dcf | $728.24 | $536.29 – $1,029.45 | +281.08% | 19.1% | kₑ 9.5%, g₀=25.0%, gₗ=4.3% | high |
| DDM · Gordon | ddm | $34.73 | $29.14 – $42.97 | -81.83% | — | D₁ 1.74, kₑ 9.5%, gₗ 4.3% | med |
| DDM · H-model | ddm | $69.15 | $53.83 – $91.72 | -63.82% | — | D₀ 1.74, g₀=25.0%, gₗ=4.3%, H 5y | med |
| DDM · multi-stage | ddm | $54.05 | $45.94 – $62.16 | -71.72% | 4.3% | 5y schedule 25.0% → 4.3%, kₑ 9.5% | high |
| Residual income | income | $69.26 | $60.95 – $77.57 | -63.76% | 12.8% | BV 64.72, ROE 12.6% → kₑ | high |
| EVA / MVA | income | $343.32 | $302.13 – $384.52 | +79.66% | 8.5% | IC 69.0B, WACC 8.4% | high |
| P/E · sector | multiple | $218.40 | $192.19 – $244.61 | +14.29% | 10.6% | EPS 7.80 × peer P/E 28.0 | med |
| P/S · sector | multiple | $272.65 | $231.75 – $313.55 | +42.68% | — | Rev/sh 45.44 × peer P/S 6.00 | med |
| EV / EBITDA | multiple | $277.05 | $243.81 – $310.30 | +44.98% | 10.6% | EBITDA × peer 20.0× − ND 9.8B | high |
| EV / EBIT | multiple | $223.42 | $189.91 – $256.93 | +16.91% | — | EBIT × peer 24.0× − ND | med |
| EV / Sales | multiple | $220.98 | $187.83 – $254.12 | +15.63% | 5.3% | Sales × peer 5.10× − ND | med |
| PEG-anchored | multiple | $312.00 | $265.20 – $358.80 | +63.27% | — | PEG=1, fwd EPS g 79.2% | med |
| Earnings power | intrinsic | $79.75 | $70.18 – $89.32 | -58.27% | 1.1% | NOPAT / WACC, no growth | med |
| Graham revised | intrinsic | $373.21 | $317.23 – $429.19 | +95.30% | 1.1% | EPS×(8.5+2g)·4.4/Y | low |
| Lynch P/E=g | intrinsic | $195.00 | $165.75 – $224.25 | +2.04% | 1.1% | PE = g (25.0) | low |
| Book NAV | asset | $64.72 | $61.48 – $67.96 | -66.13% | 2.1% | (Assets − Liabilities) / Shares | high |
| Liquidation | asset | $30.26 | $25.72 – $34.80 | -84.17% | — | Cash 100% + non-cash 70% − Liab. | low |
| Reverse DCF | reverse | — | — | — | — | Implied g -13.1% · Pessimistic — market pricing decline | high |
Cost-of-capital build-up
CAPM cost of equity, after-tax cost of debt, WACC. Risk-free as of 2026-05-12.
| Risk-free rate (US 10y Treasury)rf | 4.46% |
| Equity beta (1.14)β | × 1.14 |
| Equity risk premiumERP | 4.46% |
| Cost of equity (CAPM)kₑ | 9.54% |
| Pre-tax cost of debtkd | 5.96% |
| Effective tax ratet | 21.7% |
| After-tax cost of debt | 4.67% |
| Equity weight$59.1B | 77.5% |
| Debt weight$17.2B | 22.5% |
| WACC | 8.44% |
Growth assumptions
Blended forward growth used as DCF default; terminal pegged to long-run nominal GDP.
| Analyst forward revenue growthFMP | 11.12% |
| Analyst forward EPS growthFMP | 79.17% |
| Historical 5y revenue CAGRFY | 11.89% |
| Historical 5y EPS CAGRFY | 51.52% |
| Sustainable g (ROE × retention)Δ | 9.93% |
| Blended near-term growth (g₀) | 25.00% |
| Terminal growth (gₗ) | 4.32% |
Sources
- FMP /analyst-estimates— 8 rows(as of 2023-01-30)
- Treasury rates · 10y— 4.46% rf(as of 2026-05-12)
- market_risk_premium · DB— 4.46% ERP(as of 2026-05-13)
- Sector multiple defaults— Technology (live sector PE unavailable)
- FMP /price-target-consensus— mean $287.00
This page is generated by a quantitative valuation engine for research purposes only and does not constitute investment advice. Methodology follows standard CFA / Damodaran frameworks; assumptions are driven by analyst consensus from Financial Modeling Prep and reported financial statements.