Definitive Analysis
Definitive Analysis

Financial Statements

Analysis Mode

Ticker / Industry / Sector

Salesforce, Inc. (CRM)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$136.67 - $284.30$192.67
Multi-Stage$101.04 - $110.32$105.59
Blended Fair Value$149.13
Current Price$260.41
Upside-42.73%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%1.590.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.59%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7,222.00
(-) Cash Dividends Paid (M)1,579.00
(=) Cash Retained (M)5,643.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,444.40902.75541.65
Cash Retained (M)5,643.005,643.005,643.00
(-) Cash Required (M)-1,444.40-902.75-541.65
(=) Excess Retained (M)4,198.604,740.255,101.35
(/) Shares Outstanding (M)967.00967.00967.00
(=) Excess Retained per Share4.344.905.28
LTM Dividend per Share1.631.631.63
(+) Excess Retained per Share4.344.905.28
(=) Adjusted Dividend5.976.536.91
WACC / Discount Rate10.11%10.11%10.11%
Growth Rate5.50%6.50%7.50%
Fair Value$136.67$192.67$284.30
Upside / Downside-47.52%-26.01%9.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,222.007,691.438,191.378,723.819,290.869,894.7710,191.61
Payout Ratio21.86%35.49%49.12%62.75%76.37%90.00%92.50%
Projected Dividends (M)1,579.002,729.774,023.465,473.807,095.698,905.299,427.24

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.11%10.11%10.11%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,455.802,479.082,502.35
Year 2 PV (M)3,256.373,318.403,381.01
Year 3 PV (M)3,985.574,099.994,216.57
Year 4 PV (M)4,647.974,826.725,010.58
Year 5 PV (M)5,247.895,501.365,764.54
PV of Terminal Value (M)78,111.6881,884.5085,801.72
Equity Value (M)97,705.29102,110.05106,676.77
Shares Outstanding (M)967.00967.00967.00
Fair Value$101.04$105.59$110.32
Upside / Downside-61.20%-59.45%-57.64%

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