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Salesforce, Inc. (CRM)

Company Dividend Discount ModelIndustry: Software - ApplicationSector: Technology

Valuation Snapshot

Stable Growth$175.19 - $464.73$267.89
Multi-Stage$119.58 - $130.67$125.02
Blended Fair Value$196.45
Current Price$260.41
Upside-24.56%
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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$175.19$267.89$464.73
Upside / Downside-32.72%2.87%78.46%

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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,478.632,502.122,525.62
Year 2 PV (M)3,317.203,380.383,444.16
Year 3 PV (M)4,097.774,215.404,335.26
Year 4 PV (M)4,823.245,008.725,199.51
Year 5 PV (M)5,496.405,761.886,037.52
PV of Terminal Value (M)95,417.36100,026.05104,811.13
Equity Value (M)115,630.59120,894.56126,353.20
Shares Outstanding (M)967.00967.00967.00
Fair Value$119.58$125.02$130.67
Upside / Downside-54.08%-51.99%-49.82%

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