CRM — Salesforce, Inc.
Snapshot dated August 27, 2026.
Salesforce, Inc. provides customer relationship management software that connects companies with their customers across various digital touchpoints. Its product suite is anchored by Sales Cloud and Service Cloud, which automate sales pipelines and manage customer support requests, respectively. The company also operates through its Marketing Cloud and Data Cloud segments, which integrate marketing automation and real-time customer data management into its broader platform. Customers range from small businesses to multinational enterprises, supported by a global workforce of over 70,000 employees. As a dominant provider in the enterprise cloud software market, it operates alongside competitors like Microsoft, Oracle, and SAP. Recently, the company has heavily pivoted its research and development toward its Einstein 1 AI platform, focusing on embedding generative AI capabilities across its entire software ecosystem.
Fair Value / Share
$280.42
Price on August 27, 2026
$252.19
Margin of Safety
11.19%
Data by Equibles and SEC filings. Figures are as of August 27, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$252.19
Market Cap
$207,047,990,000
Net Income (TTM)
$9,662,000,000
Diluted Shares
821.0 million
EPS (TTM)
$11.77
Earnings Yield
4.67%
AI Analysis
Salesforce currently presents an earnings yield of 4.67%, calculated from an EPS of $11.77 and a share price of $252.19. This yield sits near the 4-5% benchmark often associated with returns from safer, alternative assets. A yield at this level implies the current market price reflects an expectation that the company will maintain its existing earnings trajectory, as the return on capital is comparable to low-risk debt instruments. For this percentage to increase, the company would need to generate higher annual earnings at the same price point, or the market price would need to decline. This measurement focuses exclusively on trailing annual earnings and does not account for potential future shifts in operating costs, changes in profit margins, or the underlying growth rate of the business.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$8,735,000,000
Net Working Capital
-$12,563,000,000
Net Fixed Assets
$3,042,000,000
Invested Capital
-$9,521,000,000
Return on Capital
Capital-free operations
This business operates on negative invested capital — customers pay in advance, so the business funds itself rather than tying up capital. Combined with positive EBIT, that is the strongest possible outcome in this framework, not a missing result.
AI Analysis
Salesforce generated $8.7B in EBIT while operating with negative invested capital of -$9.5B, calculated from -$12.6B in net working capital and $3B in net fixed assets. Because the denominator is negative, a standard return on capital percentage cannot be calculated; however, this represents the strongest possible outcome within this framework. It indicates that the company generates significant operating profit without requiring its own capital to fund operations, largely because customer payments for services are collected in advance. This efficiency allows the business to sustain itself and compound profitability without the need for additional capital injection. This measure does not capture qualitative factors like brand durability or the competitive landscape, and capital intensity can shift based on industry norms or major strategic pivots that require heavy upfront spending.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| MSFTMicrosoft Corp | $155.2B | $3.8T | 24.3x |
| ORCLOracle Corp | $20.6B | $547.4B | 26.6x |
| CRMSalesforce, Inc. | $8.7B | $238B | 27.2x |
Where CRM sits: 27.2x against a peer median of 25.5x (peers: 26.6x and 24.3x) — in line with the median, within 7.1%.
Show the enterprise value bridge for each companyHide the enterprise value bridge
CRM
Debt $39.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
ORCL
Named as a competitor: Competes directly in enterprise CRM and customer data platform software
Debt $129.5B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
MSFT
Named as a competitor: Competes in sales force automation and customer service software via Dynamics 365
Debt $40.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. It carries no separately reported lease obligations.
Operating earnings — CRM
AI Analysis
Salesforce (CRM) has an Acquirer's Multiple of 27.2x, derived from an enterprise value of $238B and operating earnings of $8.7B. Among the group, Microsoft (MSFT) holds the lowest multiple at 24.3x, calculated from an enterprise value of $3.8T and operating earnings of $155.2B, while Oracle (ORCL) stands at 26.6x based on an enterprise value of $547.4B and operating earnings of $20.6B. The Acquirer's Multiple for CRM is 27.2x against a peer median of 25.5x (peers: 26.6x and 24.3x) — in line with the median, within 7.1%. This measurement relies on current operating earnings and enterprise value; the spread between these figures would shift if the companies' capital structures diverged further, if operating margins expanded or contracted, or if the debt levels included in their respective enterprise values changed significantly. The multiple does not adjust for differences in future growth expectations or varying levels of capital intensity.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
9/10
This company scores high on profitability, stability, and momentum.
Section 1
Current Profitability
3/3
This section is Strong, with the company clearing all three checks for current profitability by generating positive returns and cash relative to its assets.
- Return on Assets is positive at 6.64%
- Free Cash Flow to Total Assets is positive at 12.82%
- Accruals show cash-backed earnings with Cash Flow from Operations 2.01 times higher than Net Income
A score of 3/3 indicates that accounting profits are backed by actual cash generation; this would only change if free cash flow fell below net income or the company began reporting losses.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
This section is Mixed, reflecting a reduction in share count offset by a slight increase in the long-term debt burden relative to assets.
- Long-Term Debt to Total Assets rose slightly to 0.09 from 0.08 a year ago
- Current Ratio is 0.76, but the point is awarded because current assets cover non-deferred obligations 2.2 times over
- Net Dilution is negative as annual diluted weighted-average shares fell to 956.0 million from 974.0 million
The stability score would improve to a perfect 3/3 if the ratio of long-term debt to total assets were to stay flat or decline in the next reporting period.
Change in Leverage (↓ or unchanged)
FailChange in Liquidity (↑ Current Ratio)
PassCustomers pay in advance here: 66% of what this company owes within the year is revenue it has already collected but not yet delivered, not money it has to pay out. A current ratio below 1 is how this business model works, not a warning sign — setting that revenue aside, current assets cover the remaining obligations 2.2 times over.
Net Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
4/4
This section is Strong, as the business showed year-over-year progress across every operational efficiency and margin metric measured.
- Return on Assets improved to 6.64% from 6.02% year over year
- Free Cash Flow to Total Assets increased to 12.82% from 12.08%
- Gross Margin climbed to 77.68% from 77.19% previously
- Asset Turnover ticked up to 0.37 from 0.37 a year earlier
This maximum score reflects a business that is becoming more efficient; it would drop if the company failed to generate more revenue per dollar of assets than it did the prior year.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
PassFramework conclusion
The total score is 9/10, driven by strong profitability and across-the-board operational improvements. This high score suggests that if the stock is trading at a low multiple, that price is more likely to reflect market mispricing rather than a fundamental deterioration of the underlying business. The score provides a snapshot of financial health but does not account for future growth projections or the specific valuation of the shares.
- Return on Assets improved year over year to 6.64%
- Cash Flow from Operations is 2.01 times Net Income
- Gross Margin expanded to 77.68%
- Annual diluted weighted-average shares decreased to 956.0 million
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$15.2B
+ After-Tax Interest Expense
$271.7M
= Unlevered Free Cash Flow
$15.4B
Business value (10-year DCF)
PV of Years 1–10
$127.2B
PV of Terminal Value
$134B
= Business Value
$261.2B
Business value → share value
Intrinsic Value (business)
$261.2B
+ Cash & Equivalents
$8.3B
− Debt
$39.3B
= Shareholders' Value
$230.2B
÷ Diluted Shares
821.0 million
= Fair Value / Share
$280.42
Divided by 821.0 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-07-31.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$15.4B
Growth rate (yrs 1–10)
10%
Terminal growth (after yr 10)
3%
AI Analysis
This valuation applies a 12% discount rate to Salesforce, reflecting its position as a dominant provider of recurring software revenue while acknowledging the high level of competition in the enterprise space. The forecast begins with a fixed Year-1 FCF of $15.4B and assumes 10.00% annual growth over the next decade, which aligns with the company’s history of expanding operating margins and steady compounding. Beyond this initial decade, a terminal growth rate of 3% is used. This rate is fixed for all companies in this framework to mirror long-run economic expectations, and the resulting terminal value accounts for 51.3% of the total business value. To derive the fair value per share, the intrinsic value is adjusted for the company's $8.3B in cash and $39.3B in debt before being divided by 821.0 million shares. This computation yields a fair value per share of $280.42. Against the current price of $252.19, the model indicates a margin of safety of 11.19%. This margin functions as a buffer for potential inaccuracies in the projection. Because more than half of the valuation is derived from the terminal value, the result is most sensitive to the growth rate assumption, as even small changes in the expected rate of cash flow growth compounded over ten years, or changes to the terminal growth rate, would significantly alter the output.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
4.67% vs ~4-5% bond-yield benchmark
Return on Capital
Capital-free operations — negative invested capital, positive EBIT
Acquirer's Multiple
27.2x against a peer median of 25.5x (peers: 26.6x and 24.3x) — in line with the median, within 7.1%.
FS-Score
9/10 — Financial rockstar
Intrinsic Value
11.19% margin of safety
These checks present a portrait of an operationally robust entity currently trading near its historical or peer-relative baselines. The Return on Capital and FS-Score indicate highly efficient capital utilization, specifically highlighting an unusual state of negative invested capital paired with positive EBIT, which suggests the business model generates significant cash without traditional asset-heavy reinvestment requirements. This quality profile stands in contrast to the valuation metrics, where the Earnings Yield at 4.67%, the Acquirer's Multiple at 27.2x, and an 11.19% margin of safety all suggest the current market price sits in closer alignment with expected norms than a discount. While the operational framework demonstrates significant efficiency, the valuation measures are not currently exhibiting a gap that deviates from these benchmarks. If the Intrinsic Value check were to shift toward a larger margin of safety, it would represent the most significant change in the overall picture, signaling that the company’s price had adjusted relative to its cash-generating capability.