Salesforce (CRM) — owner-earnings valuation, FY2026 basis

Assumptions as of 2026-08-27

USD

Updated Aug 27, 2026 · Revised 1 time

as of 2026-08-27

Fair value per share

$96.89

Upside vs market

-61.6%

Justified multiple of owner earnings

9.64

Owner earnings ($M)

11,159

Implied 7-yr revenue CAGR

5.2%

Relative growth decay per year

15.0%

Discount rate

10.0%

Entry growth (organic)

8.0%

Reported FCF margin

34.7%

Gross margin (reported FY25)

77.2%

Net debt ($M, at 2026-07-31; debt 39,288 less cash and marketable securities 11,403)

27,885$M

Market price

$252.05

FY26 revenue ($M)

41,500$M

SBC as pct of revenue

7.8%

Diluted shares (M)

822M

Terminal multiple cap

18.00

Total multiple cap

45.00

	FY2026
Revenue	41,500
x Reported FCF margin	34.7%
- SBC charged in full	3,245
= Owner earnings	11,159
x Justified multiple	9.64
= Enterprise value	107,527
- Net debt	27,885
= Equity value	79,642
Market EV for comparison	235,070
Market multiple of owner earnings	21.06

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