Salesforce Inc. (CRM) DCF Valuation
Salesforce DCF: $10.5B TTM FCF, 10% growth on AI agent + cloud expansion.
Technology · Founded 1999 · Beta 1.30
Salesforce Inc.
Current price: $256.30 · Market cap ≈ $246.0B
Salesforce's $10.5B TTM FCF reflects margin expansion as the company shifts focus from growth-at-all-costs to profitable growth. The $12B net debt is manageable. Long-term thesis depends on AI agent monetization across the enterprise base.
DCF Valuation Inputs
High-growth phase
Decay/growth normalization
Perpetual (≤ WACC)
Must be > terminal growth
in millions
Enterprise Value
$257M
Equity Value
$245M
Per Share
$0
Upside / (Downside)
-100.0%
PV of explicit FCF
$54M
Terminal value
$305M
PV of terminal
$203M
Terminal % of EV
79.1%
| Year | Growth | FCF ($M) | Discount Factor | PV ($M) |
|---|---|---|---|---|
| 0 | base | $11 | 1.000 | — |
| 1 | 10.0% | $12 | 0.922 | $11 |
| 2 | 9.0% | $13 | 0.849 | $11 |
| 3 | 9.0% | $14 | 0.783 | $11 |
| 4 | 9.0% | $15 | 0.722 | $11 |
| 5 | 9.0% | $16 | 0.665 | $11 |
| Terminal | perpetual | — | — | $203 |
Discount factor = 1 / (1 + WACC)ⁿ. Terminal value computed using the Gordon Growth Model: TV = FCF_N × (1 + g) / (WACC − g), then discounted back to present.
| g ＼ WACC | 6.5% | 7.5% | 8.5% | 9.5% | 10.5% |
|---|---|---|---|---|---|
| 2.0% | $0 | $0 | $0 | $0 | $0 |
| 2.5% | $0 | $0 | $0 | $0 | $0 |
| 3.0% | $0 | $0 | $0 | $0 | $0 |
| 3.5% | $0 | $0 | $0 | $0 | $0 |
| 4.0% | $0 | $0 | $0 | $0 | $0 |
Highlighted cell is your current WACC × terminal-growth assumption. Cells beyond WACC ≤ g are undefined (Gordon Growth fails).
CRM DCF: At Default Assumptions
| Item | Value | Notes |
|---|---|---|
| Current price | $256.30 | Market |
| Intrinsic value (per share) | $0.25 | DCF model output |
| Upside / (Downside) | -99.9% | vs current price |
| Enterprise value | $$257M | PV of explicit FCF + terminal |
| Equity value | $$245M | EV − net debt |
| Key fact | Operating margin: ~20% (expanding) | |
Numbers reflect TTM fundamentals + default DCF assumptions (8.5% WACC, 3.0% terminal growth, 10% Year-1 growth, 9% Years 2+). Use the calculator above to run your own scenario.
CRM Sources & References
- SEC EDGAR: latest 10-K filing, 10-Q filings, and proxy statement for Salesforce Inc. (CRM).
- Yahoo Finance: real-time price snapshot, analyst consensus growth estimates, and 52-week range.
- S&P Capital IQ: WACC build (cost of equity via CAPM + after-tax cost of debt).
- Federal Reserve Economic Data (FRED): risk-free rate for CAPM, sector beta benchmarks.
- Damodaran Online (NYU): Technology sector WACC and beta benchmarks for cross-validation.
DCF models for other large-caps
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Author
Maya Chen, CFA
Chartered Financial Analyst
Independently reviewed
Dr. Aaron Pak, PhD
Doctor of Kinesiology & Public Health
Last reviewed: August 12, 2026 · Next scheduled review: quarterly
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Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.
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