Salesforce.com - Comparative Multiple Analysis

Salesforce.com (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Salesforce.com

WikiWealth compares Salesforce.com's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Salesforce.com's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Salesforce.com.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Salesforce.com's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Salesforce.com's Analysis


How does this work? The Comparative Investment Analysis determines the value of Salesforce.com by comparing Salesforce.com financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Salesforce.com.

See the Salesforce.com cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Salesforce.com.

Also, see the Salesforce.com's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Salesforce.com's valuation conclusion for a quick summary.