Salesforce.com (CRM:NYS) Fundamental Valuation Report


Fundamental Valuation Report

Salesforce.com(CRM:NYS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$161.95 (USD) 18/03/2019

Weighted Valuation
$179.45 (USD)

Overall Rating
Undervalued by 10.8%

Valuation Models Analyst Consensus: $174.09 (USD)
(in order of importance) Adjusted Book Value: $187.50 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (CRM:NYS USD)

Price 161.95
Range 160.88 – 163.33
52 week 112.88 – 164.53
Open 161.40
Vol / Avg. 3.49M/6.44M
Mkt cap 124.86B
P/E 113.25
Div/yield 0.00/0.00
EPS 1.43
Shares 771M
Beta 1.40

Company Description

Salesforce.com Inc is a software-as-as-service vendor that primarily develops customer relationship management, or CRM, products. The firm has a variety of cloud-based tools targeting horizontal markets such as Sales Cloud, to monitor sales leads, Service Cloud, for customer support, Marketing Cloud, to launch digital marketing campaigns, Commerce Cloud, a multitenant e-commerce tool, Quip, its collaboration tools, and the Salesforce Platform, which allows enterprises to build applications. Beyond this, Salesforce has various initiatives such as Trailhead, Einstein AI, Lightning, Internet of Things, Heroku, Analytics, AppExchange, and MuleSoft. Salesforce is the largest pure-play SaaS vendor in the world.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for CRM:NYS

Using a discounted cash flow model we generated an intrinsic value of $89.61 (USD) for CRM:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

CRM:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $89.61 1% 5% 1% 5%
WACC (or Ke) 10.27 $104.71 $78.17
Terminal Growth Rate 3.00 $79.62 $102.79
Tax Rate -0.13 $93.59 $85.64
Cash Flow 5,017,954,000 $85.12 $94.11
Capital Expenditures -16,041,200 $89.60 $89.63
Long Term Debt 2,018,099,000 $89.75 $89.48

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $365.18 (USD) for CRM:NYS. We also generated a valuation of $339.05 (USD) using other metrics and comparables.
The comparable companies were Adobe (ADBE:NAS), Autodesk (ADSK:NAS), Intuit (INTU:NAS), ServiceNow (NOW:NYS) and Red Hat (RHT:NYS).

Company CRM:NYS End Date Value
Earnings/Share $1.43 (USD)
Book Value/Share $19.06 (USD)
Sales/Share $16.30 (USD)
Cash Flow/Share $4.07 (USD)
EBITDA/Share $2.71 (USD)
Price Based on Comps Adjustment Factor (%)
$107.52 (USD) 0.0
$467.75 (USD) 65.7
$213.91 (USD) 91.3
$195.42 (USD) -24.7
$387.94 (USD) 0.0
CRM:NYS Ratios Used Average Values ADBE:NAS ADSK:NAS INTU:NAS NOW:NYS RHT:NYS
175.97 PE Ratio 75.19 50.48 0.00 51.70 0.00 123.38
8.59 PB Ratio 24.54 13.71 0.00 22.90 38.89 22.67
10.04 PS Ratio 13.13 14.47 13.89 10.43 16.32 10.53
40.20 PCF Ratio 49.01 32.43 94.62 30.43 52.50 35.05
72.28 EV to EBITDA 143.24 40.03 328.59 34.38 263.82 49.36

Multiples

Using a multiples approach we generated a valuation of  $210.40 (USD) for CRM:NYS

Company CRM:NYS End Date Value
Earnings/Share $1.43 (USD)
Book Value/Share $19.06 (USD)
Sales/Share $16.30 (USD)
Cash Flow/Share $4.07 (USD)
EBITDA/Share $2.71 (USD)
Price Based on Comps Adjustment Factor
$383.71 (USD) 0
$175.46 (USD) 0
$125.52 (USD) 0
$128.57 (USD) 0
$238.76 (USD) 0
Ratios Ratio Average
PE Ratio 268.33
PB Ratio 9.21
PS Ratio 7.70
PCF Ratio 31.58
EV to EBITDA 88.15

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  CRM:NYS for the last 10 years was  9.25

We ran the Adjusted Book Value for  CRM:NYS and generated a book value of  $20.27 (USD)
By multiplying these we get an adjusted valuation of  $187.50 (USD)

Analyst Data

In the Stockcalc database there are 11 analysts that provide a valuation for CRM:NYS. The 11 analysts have a concensus valuation for CRM:NYS for 2020 of $174.09 (USD).

CRM:NYS Salesforce.com

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
9 3 0 4.4615 Outperform 2019-3-15

Current Price: 161.95 USD

Analyst Consensus
USD Millions 2020 2021 2022
Mean EPS 2.78 3.45 4.35
# EPS Analysts 13 11 5
Mean Revenue 16,038.20 19,172.20 22,784.90
# Revenue Analysts 11 9 5
Mean Target Price 174.09
Mean Cash Flow 5.00 5.80 6.88
Mean EBITDA 3,046.70 4,224.10 4,871.80
Mean Net Income 2,070.00 2,634.30 3,058.30
Mean Debt Outstanding -5,574.10 -9,105.90 -8,198.50
Mean Tax Rate 22.00 22.50 22.75
Mean Growth Rate 21.63
Mean Capital Expenditure 733.20 866.00 1,030.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Salesforce.com (CRM:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Salesforce.com(CRM:NYS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$160.67 (USD) 14/03/2019

Weighted Valuation
$179.53 (USD)

Overall Rating
Undervalued by 11.7%

Valuation Models Analyst Consensus: $174.09 (USD)
(in order of importance) Adjusted Book Value: $187.69 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (CRM:NYS USD)

Price 160.67
Range 159.74 – 161.59
52 week 112.88 – 164.53
Open 160.95
Vol / Avg. 3.23M/6.45M
Mkt cap 123.88B
P/E 112.36
Div/yield 0.00/0.00
EPS 1.43
Shares 771M
Beta 1.40

Company Description

Salesforce.com Inc is a software-as-as-service vendor that primarily develops customer relationship management, or CRM, products. The firm has a variety of cloud-based tools targeting horizontal markets such as Sales Cloud, to monitor sales leads, Service Cloud, for customer support, Marketing Cloud, to launch digital marketing campaigns, Commerce Cloud, a multitenant e-commerce tool, Quip, its collaboration tools, and the Salesforce Platform, which allows enterprises to build applications. Beyond this, Salesforce has various initiatives such as Trailhead, Einstein AI, Lightning, Internet of Things, Heroku, Analytics, AppExchange, and MuleSoft. Salesforce is the largest pure-play SaaS vendor in the world.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for CRM:NYS

Using a discounted cash flow model we generated an intrinsic value of $89.61 (USD) for CRM:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

CRM:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $89.61 1% 5% 1% 5%
WACC (or Ke) 10.27 $104.71 $78.17
Terminal Growth Rate 3.00 $79.62 $102.79
Tax Rate -0.13 $93.59 $85.64
Cash Flow 5,017,954,000 $85.12 $94.11
Capital Expenditures -16,041,200 $89.60 $89.63
Long Term Debt 2,018,099,000 $89.75 $89.48

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $365.39 (USD) for CRM:NYS. We also generated a valuation of $339.43 (USD) using other metrics and comparables.
The comparable companies were Adobe (ADBE:NAS), Autodesk (ADSK:NAS), Intuit (INTU:NAS), ServiceNow (NOW:NYS) and Red Hat (RHT:NYS).

Company CRM:NYS End Date Value
Earnings/Share $1.43 (USD)
Book Value/Share $19.06 (USD)
Sales/Share $16.30 (USD)
Cash Flow/Share $4.07 (USD)
EBITDA/Share $2.71 (USD)
Price Based on Comps Adjustment Factor (%)
$107.52 (USD) 0.0
$467.75 (USD) 65.9
$213.91 (USD) 91.3
$195.42 (USD) -24.7
$387.94 (USD) 0.0
CRM:NYS Ratios Used Average Values ADBE:NAS ADSK:NAS INTU:NAS NOW:NYS RHT:NYS
175.97 PE Ratio 75.19 50.48 0.00 51.70 0.00 123.38
8.59 PB Ratio 24.54 13.71 0.00 22.90 38.89 22.67
10.04 PS Ratio 13.13 14.47 13.89 10.43 16.32 10.53
40.20 PCF Ratio 49.01 32.43 94.62 30.43 52.50 35.05
72.28 EV to EBITDA 143.24 40.03 328.59 34.38 263.82 49.36

Multiples

Using a multiples approach we generated a valuation of  $210.40 (USD) for CRM:NYS

Company CRM:NYS End Date Value
Earnings/Share $1.43 (USD)
Book Value/Share $19.06 (USD)
Sales/Share $16.30 (USD)
Cash Flow/Share $4.07 (USD)
EBITDA/Share $2.71 (USD)
Price Based on Comps Adjustment Factor
$383.71 (USD) 0
$175.47 (USD) 0
$125.52 (USD) 0
$128.57 (USD) 0
$238.76 (USD) 0
Ratios Ratio Average
PE Ratio 268.33
PB Ratio 9.21
PS Ratio 7.70
PCF Ratio 31.58
EV to EBITDA 88.15

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  CRM:NYS for the last 10 years was  9.26

We ran the Adjusted Book Value for  CRM:NYS and generated a book value of  $20.27 (USD)
By multiplying these we get an adjusted valuation of  $187.69 (USD)

Analyst Data

In the Stockcalc database there are 11 analysts that provide a valuation for CRM:NYS. The 11 analysts have a concensus valuation for CRM:NYS for 2020 of $174.09 (USD).

CRM:NYS Salesforce.com

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
9 3 0 4.4615 Outperform 2019-3-13

Current Price: 160.67 USD

Analyst Consensus
USD Millions 2020 2021 2022
Mean EPS 2.78 3.45 4.35
# EPS Analysts 13 11 5
Mean Revenue 16,038.20 19,172.20 22,784.90
# Revenue Analysts 11 9 5
Mean Target Price 174.09
Mean Cash Flow 5.00 5.80 6.88
Mean EBITDA 3,046.70 4,224.10 4,871.80
Mean Net Income 2,070.00 2,634.30 3,058.30
Mean Debt Outstanding -5,574.10 -9,105.90 -8,198.50
Mean Tax Rate 22.00 22.50 22.75
Mean Growth Rate 21.63
Mean Capital Expenditure 733.20 866.00 1,030.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Salesforce.com (CRM:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Salesforce.com(CRM:NYS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$157.65 (USD) 11/03/2019

Weighted Valuation
$179.48 (USD)

Overall Rating
Undervalued by 13.8%

Valuation Models Analyst Consensus: $174.00 (USD)
(in order of importance) Adjusted Book Value: $187.69 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (CRM:NYS USD)

Price 157.65
Range 153.43 – 157.77
52 week 112.88 – 164.53
Open 155.90
Vol / Avg. 5.65M/6.72M
Mkt cap 121.55B
P/E 110.24
Div/yield 0.00/0.00
EPS 1.43
Shares 771M
Beta 1.40

Company Description

Salesforce.com Inc is a software-as-as-service vendor that primarily develops customer relationship management, or CRM, products. The firm has a variety of cloud-based tools targeting horizontal markets such as Sales Cloud, to monitor sales leads, Service Cloud, for customer support, Marketing Cloud, to launch digital marketing campaigns, Commerce Cloud, a multitenant e-commerce tool, Quip, its collaboration tools, and the Salesforce Platform, which allows enterprises to build applications. Beyond this, Salesforce has various initiatives such as Trailhead, Einstein AI, Lightning, Internet of Things, Heroku, Analytics, AppExchange, and MuleSoft. Salesforce is the largest pure-play SaaS vendor in the world.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for CRM:NYS

Using a discounted cash flow model we generated an intrinsic value of $89.84 (USD) for CRM:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

CRM:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $89.84 1% 5% 1% 5%
WACC (or Ke) 10.27 $104.94 $78.39
Terminal Growth Rate 3.00 $79.85 $103.02
Tax Rate -0.13 $93.82 $85.86
Cash Flow 5,017,954,000 $85.33 $94.35
Capital Expenditures -16,041,200 $89.83 $89.85
Long Term Debt 2,018,099,000 $89.97 $89.71

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $365.41 (USD) for CRM:NYS. We also generated a valuation of $339.17 (USD) using other metrics and comparables.
The comparable companies were Adobe (ADBE:NAS), Autodesk (ADSK:NAS), Intuit (INTU:NAS), ServiceNow (NOW:NYS) and Red Hat (RHT:NYS).

Company CRM:NYS End Date Value
Earnings/Share $1.43 (USD)
Book Value/Share $19.06 (USD)
Sales/Share $16.30 (USD)
Cash Flow/Share $4.07 (USD)
EBITDA/Share $2.71 (USD)
Price Based on Comps Adjustment Factor (%)
$107.52 (USD) 0.0
$467.75 (USD) 65.9
$213.91 (USD) 91.3
$195.42 (USD) -24.7
$387.94 (USD) 0.0
CRM:NYS Ratios Used Average Values ADBE:NAS ADSK:NAS INTU:NAS NOW:NYS RHT:NYS
175.97 PE Ratio 75.19 50.48 0.00 51.70 0.00 123.38
8.59 PB Ratio 24.54 13.71 0.00 22.90 38.89 22.67
10.04 PS Ratio 13.13 14.47 13.89 10.43 16.32 10.53
40.20 PCF Ratio 49.01 32.43 94.62 30.43 52.50 35.05
72.28 EV to EBITDA 143.24 40.03 328.59 34.38 263.82 49.36

Multiples

Using a multiples approach we generated a valuation of  $210.40 (USD) for CRM:NYS

Company CRM:NYS End Date Value
Earnings/Share $1.43 (USD)
Book Value/Share $19.06 (USD)
Sales/Share $16.30 (USD)
Cash Flow/Share $4.07 (USD)
EBITDA/Share $2.71 (USD)
Price Based on Comps Adjustment Factor
$383.71 (USD) 0
$175.47 (USD) 0
$125.52 (USD) 0
$128.57 (USD) 0
$238.76 (USD) 0
Ratios Ratio Average
PE Ratio 268.33
PB Ratio 9.21
PS Ratio 7.70
PCF Ratio 31.58
EV to EBITDA 88.15

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  CRM:NYS for the last 10 years was  9.26

We ran the Adjusted Book Value for  CRM:NYS and generated a book value of  $20.27 (USD)
By multiplying these we get an adjusted valuation of  $187.69 (USD)

Analyst Data

In the Stockcalc database there are 11 analysts that provide a valuation for CRM:NYS. The 11 analysts have a concensus valuation for CRM:NYS for 2020 of $174.00 (USD).

CRM:NYS Salesforce.com

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
9 3 0 4.4615 Outperform 2019-3-8

Current Price: 157.65 USD

Analyst Consensus
USD Millions 2020 2021 2022
Mean EPS 2.79 3.45 4.32
# EPS Analysts 13 11 4
Mean Revenue 16,030.70 19,127.30 22,677.60
# Revenue Analysts 11 9 4
Mean Target Price 174.00
Mean Cash Flow 5.00 5.80 6.88
Mean EBITDA 3,214.90 4,224.10 4,871.80
Mean Net Income 2,070.00 2,634.30 3,058.30
Mean Debt Outstanding -5,574.10 -9,105.90 -8,198.50
Mean Tax Rate 22.00 22.50 22.75
Mean Growth Rate 21.63
Mean Capital Expenditure 733.20 866.00 1,030.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Microsoft (MSFT:NAS) and Norfolk Southern (NSC:NYS) Downgraded

Stockcalc – Free Trial

Have a free look inside the StockCalc website at www.stockcalc.com



I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Downgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been downgraded by at least one analyst in the last few days.

Why Do Companies Get Downgraded?

Companies can get downgraded for a number of reasons but primarily due to reduced future earnings potential due to loss of contracts, faultering product lines, increasing costs relative to revenue or financial risk.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
NSC Norfolk Southern Corp 4 0 3 0 1 0 3.7500 3.8889 Outperform
NOW ServiceNow Inc 6 0 2 0 0 0 4.5000 4.6000 Outperform
PSA Public Storage 1 0 1 0 0 0 4.0000 4.5000 Outperform
SQ Square Inc 4 0 1 1 0 0 4.1667 4.2857 Outperform
LUV Southwest Airlines Co 2 0 2 0 0 0 4.0000 4.2000 Outperform
RCL Royal Caribbean Cruises Ltd 3 0 1 0 0 0 4.5000 4.6000 Outperform
CCEP Coca-Cola European Partners PLC 1 0 3 0 0 0 3.5000 3.8000 Hold
O Realty Income Corp 1 0 1 1 0 0 3.3333 3.6667 Hold
WAT Waters Corp 0 0 1 1 0 0 2.5000 2.6667 Underperform
MGA Magna International Inc 2 3 4 0 0 0 3.7778 4.0000 Outperform
ALB Albemarle Corp 5 1 1 0 0 0 4.5714 4.7143 Buy
LN LINE Corp 0 0 1 0 0 0 3.0000 3.5000 Hold
TYL Tyler Technologies Inc 1 0 1 0 0 0 4.0000 5.0000 Outperform
KL Kirkland Lake Gold Ltd 4 1 7 0 0 0 3.7500 4.1818 Outperform
KNX Knight-Swift Transportation Holdings Inc 1 0 4 0 0 0 3.4000 3.6667 Hold
WH Wyndham Hotels & Resorts Inc 2 1 0 0 0 0 4.6667 5.0000 Buy
SERV ServiceMaster Global Holdings Inc 1 0 1 0 0 0 4.0000 4.3333 Outperform
VIPS Vipshop Holdings Ltd 1 0 1 0 1 0 3.0000 3.6667 Hold
BKU BankUnited Inc 1 0 1 0 0 0 4.0000 4.3333 Outperform
BOX Box Inc 4 0 1 0 0 0 4.6000 5.0000 Buy
AGI Alamos Gold Inc 6 3 5 0 0 0 4.0714 4.1429 Outperform
MTH Meritage Homes Corp 0 0 1 0 0 0 3.0000 4.0000 Hold
NE Noble Corp PLC 2 0 5 0 1 0 3.2500 3.5000 Hold
PDS Precision Drilling Corp 8 3 1 2 1 0 4.0000 4.0667 Outperform
ELVT Elevate Credit Inc 1 0 1 0 0 0 4.0000 5.0000 Outperform
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
L Loblaw Companies Ltd 3 2 3 2 0 0 3.6000 3.9000 Outperform
MG Magna International Inc 2 3 4 0 0 0 3.7778 4.0000 Outperform
TECK.B Teck Resources Ltd 8 3 2 0 0 0 4.4615 4.5000 Outperform
TECK.A Teck Resources Ltd 8 3 2 0 0 0 4.4615 4.5000 Outperform
H Hydro One Ltd 0 1 7 0 4 0 2.4167 2.5000 Underperform
KL Kirkland Lake Gold Ltd 4 1 7 0 0 0 3.7500 4.1818 Outperform
FTT Finning International Inc 3 3 2 0 0 0 4.1250 4.6250 Outperform
AGI Alamos Gold Inc 6 3 5 0 0 0 4.0714 4.1429 Outperform
ATZ Aritzia Inc 3 2 0 0 0 0 4.6000 4.6667 Buy
LUG Lundin Gold Inc 0 4 1 0 0 0 3.8000 4.1429 Outperform
SUM Solium Capital Inc 0 0 2 0 6 0 1.5000 2.0000 Sell
SMU.UN Summit Industrial Income REIT 3 1 4 0 0 0 3.8750 4.1250 Outperform
PD Precision Drilling Corp 8 3 1 2 1 0 4.0000 4.0667 Outperform
AIF Altus Group Ltd 4 4 0 0 1 0 4.1111 4.3333 Outperform
VNR Valener Inc 0 0 6 0 0 0 3.0000 3.1667 Hold
WDO Wesdome Gold Mines Ltd 5 3 3 0 0 0 4.1818 4.3636 Outperform
TCW Trican Well Service Ltd 4 2 6 0 0 0 3.8333 3.9167 Outperform
TSX Venture Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
AGI.WT Alamos Gold Inc 6 3 5 0 0 0 4.0714 4.1429 Outperform
PEO People Corp 5 2 0 0 0 0 4.7143 4.8333 Buy
BSR Bluestone Resources Inc 2 2 0 0 0 0 4.5000 4.6000 Outperform
XX Avante Logixx Inc 2 0 1 0 0 0 4.3333 4.6667 Outperform
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
MSFT Microsoft Corp 7 1 0 0 0 0 4.8750 4.8889 Buy
INTU Intuit Inc 4 0 3 0 1 0 3.7500 3.8750 Outperform
KHC The Kraft Heinz Co 2 1 1 0 2 0 3.1667 3.5000 Hold
SBAC SBA Communications Corp 2 0 0 0 1 0 3.6667 4.0000 Outperform
IQ iQIYI Inc 1 0 0 0 2 0 2.3333 3.0000 Underperform
AAL American Airlines Group Inc 1 0 3 0 0 0 3.5000 3.8000 Hold
PFG Principal Financial Group Inc 0 0 2 0 1 0 2.3333 2.5000 Underperform
DBX Dropbox Inc 3 0 0 0 1 0 4.0000 4.2500 Outperform
FSLR First Solar Inc 3 0 3 0 0 0 4.0000 4.1667 Outperform
GGAL Grupo Financiero Galicia SA 0 0 1 0 0 0 3.0000 4.0000 Hold
SFM Sprouts Farmers Market Inc 2 0 3 0 1 0 3.3333 3.6667 Hold
STMP Stamps.com Inc 0 0 0 0 1 0 1.0000 5.0000 Sell
ANIK Anika Therapeutics Inc 1 0 1 0 0 0 4.0000 4.5000 Outperform

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

MSFT:NAS Microsoft

http://www.microsoft.com
Microsoft has 131000 employees and is headquartered in United States.
Microsoft Corp is a technology company. It develop, license, and support a wide range of software products and services. Its business is organized into three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

NSC:NYS Norfolk Southern

http://www.nscorp.com
Norfolk Southern has 26662 employees and is headquartered in United States.
Norfolk Southern Corp conducts rail transportation business. It transports raw materials, intermediate products, and finished goods in the United States.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Adobe (ADBE:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Adobe(ADBE:NAS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$253.74 (USD) 07/02/2019

Weighted Valuation
$285.01 (USD)

Overall Rating
Undervalued by 12.3%

Valuation Models Analyst Consensus: $290.14 (USD)
(in order of importance) Multiples: $277.31 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (ADBE:NAS USD)

Price 253.74
Range 250.28 – 254.31
52 week 187.99 – 275.49
Open 251.33
Vol / Avg. 2.07M/3.06M
Mkt cap 123.76B
P/E 48.80
Div/yield 0.00/0.00
EPS 5.20
Shares 487.73M
Beta 1.15

Company Description

Adobe Systems Inc is a diversified software-as-a-service vendor that operates in two main strategic segments: digital media and digital experience. In digital media, the firm sells Creative Cloud, which is composed of a variety of software for developers, designers, photographers, and videographers, such as Photoshop, Lightroom, Illustrator, Adobe XD, InDesign, Adobe Premiere Pro, Dimension, After Effects, and Adobe Stock. Adobe’s digital experience segment, sold through Experience Cloud, is composed of Marketing Cloud, Analytics Cloud, and Advertising Cloud. These products allow enterprises to launch multichannel marketing campaigns, build brands, and gain customer insights. A minority of revenue comes from Adobe’s publishing segment.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ADBE:NAS

Using a discounted cash flow model we generated an intrinsic value of $184.39 (USD) for ADBE:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ADBE:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $184.39 1% 5% 1% 5%
WACC (or Ke) 9.96 $216.73 $160.19
Terminal Growth Rate 3.00 $163.17 $212.73
Tax Rate 0.07 $193.93 $174.85
Cash Flow 7,390,456,000 $175.37 $193.42
Capital Expenditures -184,799,000 $184.20 $184.59
Long Term Debt 1,916,591,000 $184.59 $184.19

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $0.00 (USD) for ADBE:NAS. We also generated a valuation of $190.88 (USD) using other metrics and comparables.
The comparable companies were Autodesk (ADSK:NAS), Salesforce.com (CRM:NYS), Intuit (INTU:NAS), ServiceNow (NOW:NYS) and Red Hat (RHT:NYS).

Company ADBE:NAS End Date Value
Earnings/Share $5.20 (USD)
Book Value/Share $0.00 (USD)
Sales/Share $0.00 (USD)
Cash Flow/Share $0.00 (USD)
EBITDA/Share $6.49 (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) -15.3
$0.00 (USD) -19.9
$0.00 (USD) 76.1
($8.29) (USD) -51.9
$0.00 (USD) 21.3
ADBE:NAS Ratios Used Average Values ADSK:NAS CRM:NYS INTU:NAS NOW:NYS RHT:NYS
0.00 PE Ratio 0.00 0.00 0.00 0.00 0.00 0.00
0.00 PB Ratio 35.50 0.00 0.00 0.00 35.50 0.00
0.00 PS Ratio 15.00 0.00 0.00 0.00 15.00 0.00
0.00 PCF Ratio 48.24 0.00 0.00 0.00 48.24 0.00
0.00 EV to EBITDA 236.44 0.00 0.00 0.00 236.44 0.00

Multiples

Using a multiples approach we generated a valuation of  $277.31 (USD) for ADBE:NAS

Company ADBE:NAS End Date Value
Earnings/Share $5.20 (USD)
Book Value/Share $0.00 (USD)
Sales/Share $0.00 (USD)
Cash Flow/Share $0.00 (USD)
EBITDA/Share $6.49 (USD)
Price Based on Comps Adjustment Factor
$314.42 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
$240.19 (USD) 0
Ratios Ratio Average
PE Ratio 60.47
PB Ratio 7.56
PS Ratio 10.25
PCF Ratio 30.42
EV to EBITDA 37.02

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ADBE:NAS for the last 10 years was  7.32

We ran the Adjusted Book Value for  ADBE:NAS and generated a book value of  $19.20 (USD)
By multiplying these we get an adjusted valuation of  $140.52 (USD)

Analyst Data

In the Stockcalc database there are 7 analysts that provide a valuation for ADBE:NAS. The 7 analysts have a concensus valuation for ADBE:NAS for 2019 of $290.14 (USD).

ADBE:NAS Adobe

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
7 2 0 4.5000 Outperform 2019-2-6

Current Price: 253.74 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 7.81 9.58 11.42
# EPS Analysts 10 9 3
Mean Revenue 11,093.00 13,157.90 15,179.50
# Revenue Analysts 8 7 3
Mean Target Price 290.14
Mean Cash Flow 9.45 11.31 12.89
Mean EBITDA 4,808.50 6,088.50 7,175.20
Mean Net Income 3,900.00 4,841.10 6,193.20
Mean Debt Outstanding -1,640.00 -5,829.90 -13,838.80
Mean Tax Rate 10.05 13.00 18.00
Mean Growth Rate 26.58
Mean Capital Expenditure 290.30 317.50 327.40

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Adobe (ADBE:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Adobe(ADBE:NAS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$254.35 (USD) 06/02/2019

Weighted Valuation
$285.01 (USD)

Overall Rating
Undervalued by 12.1%

Valuation Models Analyst Consensus: $290.14 (USD)
(in order of importance) Multiples: $277.31 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (ADBE:NAS USD)

Price 254.35
Range 250.71 – 255.93
52 week 185.16 – 275.49
Open 255.06
Vol / Avg. 2.46M/3.13M
Mkt cap 124.05B
P/E 48.91
Div/yield 0.00/0.00
EPS 5.20
Shares 487.73M
Beta 1.15

Company Description

Adobe Systems Inc is a diversified software-as-a-service vendor that operates in two main strategic segments: digital media and digital experience. In digital media, the firm sells Creative Cloud, which is composed of a variety of software for developers, designers, photographers, and videographers, such as Photoshop, Lightroom, Illustrator, Adobe XD, InDesign, Adobe Premiere Pro, Dimension, After Effects, and Adobe Stock. Adobe’s digital experience segment, sold through Experience Cloud, is composed of Marketing Cloud, Analytics Cloud, and Advertising Cloud. These products allow enterprises to launch multichannel marketing campaigns, build brands, and gain customer insights. A minority of revenue comes from Adobe’s publishing segment.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ADBE:NAS

Using a discounted cash flow model we generated an intrinsic value of $184.39 (USD) for ADBE:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ADBE:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $184.39 1% 5% 1% 5%
WACC (or Ke) 9.96 $216.73 $160.19
Terminal Growth Rate 3.00 $163.17 $212.73
Tax Rate 0.07 $193.93 $174.85
Cash Flow 7,390,456,000 $175.37 $193.42
Capital Expenditures -184,799,000 $184.20 $184.59
Long Term Debt 1,916,591,000 $184.59 $184.19

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $0.00 (USD) for ADBE:NAS. We also generated a valuation of $191.23 (USD) using other metrics and comparables.
The comparable companies were Autodesk (ADSK:NAS), Salesforce.com (CRM:NYS), Intuit (INTU:NAS), ServiceNow (NOW:NYS) and Red Hat (RHT:NYS).

Company ADBE:NAS End Date Value
Earnings/Share $5.20 (USD)
Book Value/Share $0.00 (USD)
Sales/Share $0.00 (USD)
Cash Flow/Share $0.00 (USD)
EBITDA/Share $6.49 (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) -15.3
$0.00 (USD) -19.9
$0.00 (USD) 76.1
($8.29) (USD) -51.9
$0.00 (USD) 21.3
ADBE:NAS Ratios Used Average Values ADSK:NAS CRM:NYS INTU:NAS NOW:NYS RHT:NYS
0.00 PE Ratio 0.00 0.00 0.00 0.00 0.00 0.00
0.00 PB Ratio 35.50 0.00 0.00 0.00 35.50 0.00
0.00 PS Ratio 15.00 0.00 0.00 0.00 15.00 0.00
0.00 PCF Ratio 48.24 0.00 0.00 0.00 48.24 0.00
0.00 EV to EBITDA 236.44 0.00 0.00 0.00 236.44 0.00

Multiples

Using a multiples approach we generated a valuation of  $277.31 (USD) for ADBE:NAS

Company ADBE:NAS End Date Value
Earnings/Share $5.20 (USD)
Book Value/Share $0.00 (USD)
Sales/Share $0.00 (USD)
Cash Flow/Share $0.00 (USD)
EBITDA/Share $6.49 (USD)
Price Based on Comps Adjustment Factor
$314.42 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
$0.00 (USD) 0
$240.19 (USD) 0
Ratios Ratio Average
PE Ratio 60.47
PB Ratio 7.56
PS Ratio 10.25
PCF Ratio 30.42
EV to EBITDA 37.02

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ADBE:NAS for the last 10 years was  7.31

We ran the Adjusted Book Value for  ADBE:NAS and generated a book value of  $19.20 (USD)
By multiplying these we get an adjusted valuation of  $140.42 (USD)

Analyst Data

In the Stockcalc database there are 7 analysts that provide a valuation for ADBE:NAS. The 7 analysts have a concensus valuation for ADBE:NAS for 2019 of $290.14 (USD).

ADBE:NAS Adobe

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
7 2 0 4.5000 Outperform 2019-2-5

Current Price: 254.35 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 7.81 9.58 11.42
# EPS Analysts 10 9 3
Mean Revenue 11,093.00 13,157.90 15,179.50
# Revenue Analysts 8 7 3
Mean Target Price 290.14
Mean Cash Flow 9.45 11.31 12.89
Mean EBITDA 4,808.50 6,088.50 7,175.20
Mean Net Income 3,900.00 4,841.10 6,193.20
Mean Debt Outstanding -1,640.00 -5,829.90 -13,838.80
Mean Tax Rate 10.05 13.00 18.00
Mean Growth Rate 26.58
Mean Capital Expenditure 290.30 317.50 327.40

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Intuit (INTU:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Intuit(INTU:NAS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$211.05 (USD) 28/01/2019

Weighted Valuation
$229.87 (USD)

Overall Rating
Undervalued by 8.9%

Valuation Models Analyst Consensus: $231.00 (USD)
(in order of importance) Adjusted Book Value: $248.25 (USD)
Multiples: $189.75 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (INTU:NAS USD)

Price 211.05
Range 209.75 – 212.90
52 week 152.75 – 231.32
Open 212.83
Vol / Avg. 968020/1.4M
Mkt cap 54.77B
P/E 45.47
Div/yield 1.56/0.01
EPS 4.64
Shares 259.54M
Beta 1.17

Company Description

Intuit develops and markets well-known and trusted software products such as QuickBooks for small-business accounting, TurboTax for preparing personal tax returns, and Mint for managing personal finances. The firm is targeting the additional needs of small businesses with payroll and payment processing products in addition to growing its self-employed user base. Intuit was founded in 1983 and is based in Mountain View, California.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for INTU:NAS

Using a discounted cash flow model we generated an intrinsic value of $133.51 (USD) for INTU:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

INTU:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $133.51 1% 5% 1% 5%
WACC (or Ke) 9.46 $159.12 $114.78
Terminal Growth Rate 3.00 $116.94 $156.16
Tax Rate 0.19 $141.57 $125.45
Cash Flow 3,113,278,000 $126.74 $140.28
Capital Expenditures -160,400,000 $133.19 $133.83
Long Term Debt 1,000,000,000 $133.70 $133.32

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $286.61 (USD) for INTU:NAS. We also generated a valuation of $244.06 (USD) using other metrics and comparables.
The comparable companies were Autodesk (ADSK:NAS), ServiceNow (NOW:NYS), Palo Alto Networks (PANW:NYS), Square (SQ:NYS) and Workday (WDAY:NAS).

Company INTU:NAS End Date Value
Earnings/Share $4.78 (USD)
Book Value/Share $10.72 (USD)
Sales/Share $23.08 (USD)
Cash Flow/Share $7.78 (USD)
EBITDA/Share $6.75 (USD)
Price Based on Comps Adjustment Factor (%)
$0.00 (USD) -50.5
$228.82 (USD) 0.0
$241.63 (USD) 28.6
$807.65 (USD) -60.4
$0.00 (USD) -23.4
INTU:NAS Ratios Used Average Values ADSK:NAS NOW:NYS PANW:NYS SQ:NYS WDAY:NAS
41.18 PE Ratio 0.00 0.00 0.00 0.00 0.00 0.00
18.36 PB Ratio 21.35 0.00 31.29 14.26 20.67 19.16
8.53 PS Ratio 10.47 11.79 12.78 7.17 7.52 13.09
25.29 PCF Ratio 103.98 194.16 44.45 17.15 193.21 70.94
27.79 EV to EBITDA 5518.17 0.00 291.68 445.31 15817.51 0.00

Multiples

Using a multiples approach we generated a valuation of  $189.75 (USD) for INTU:NAS

Company INTU:NAS End Date Value
Earnings/Share $4.78 (USD)
Book Value/Share $10.72 (USD)
Sales/Share $23.08 (USD)
Cash Flow/Share $7.78 (USD)
EBITDA/Share $6.75 (USD)
Price Based on Comps Adjustment Factor
$206.70 (USD) 0
$266.85 (USD) 0
$153.45 (USD) 0
$166.29 (USD) 0
$155.44 (USD) 0
Ratios Ratio Average
PE Ratio 43.24
PB Ratio 24.90
PS Ratio 6.65
PCF Ratio 21.36
EV to EBITDA 23.02

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  INTU:NAS for the last 10 years was  23.08

We ran the Adjusted Book Value for  INTU:NAS and generated a book value of  $10.76 (USD)
By multiplying these we get an adjusted valuation of  $248.25 (USD)

Analyst Data

In the Stockcalc database there are 6 analysts that provide a valuation for INTU:NAS. The 6 analysts have a concensus valuation for INTU:NAS for 2019 of $231.00 (USD).

INTU:NAS Intuit

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
5 3 0 4.0000 Outperform 2019-1-25

Current Price: 211.05 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 6.42 7.32 8.42
# EPS Analysts 9 9 3
Mean Revenue 6,633.70 7,320.70 8,102.20
# Revenue Analysts 7 7 3
Mean Target Price 231.00
Mean Cash Flow 7.65 8.48 9.12
Mean EBITDA 2,320.90 2,621.60 3,022.60
Mean Net Income 1,695.40 1,892.60 2,171.30
Mean Debt Outstanding -2,543.10 -4,294.10 -6,691.70
Mean Tax Rate 23.00 23.00 23.00
Mean Growth Rate 14.49
Mean Capital Expenditure 158.00 190.40 200.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Adobe (ADBE:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Adobe(ADBE:NAS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$244.95 (USD) 25/01/2019

Weighted Valuation
$264.68 (USD)

Overall Rating
Undervalued by 8.1%

Valuation Models Analyst Consensus: $290.14 (USD)
(in order of importance) Multiples: $226.49 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (ADBE:NAS USD)

Price 244.95
Range 243.43 – 247.10
52 week 185.16 – 275.49
Open 244.99
Vol / Avg. 3.79M/3.3M
Mkt cap 119.57B
P/E 49.54
Div/yield 0.00/0.00
EPS 5.20
Shares 488.13M
Beta 1.16

Company Description

Adobe Systems Inc is a diversified software-as-a-service vendor that operates in two main strategic segments: digital media and digital experience. In digital media, the firm sells Creative Cloud, which is composed of a variety of software for developers, designers, photographers, and videographers, such as Photoshop, Lightroom, Illustrator, Adobe XD, InDesign, Adobe Premiere Pro, Dimension, After Effects, and Adobe Stock. Adobe’s digital experience segment, sold through Experience Cloud, is composed of Marketing Cloud, Analytics Cloud, and Advertising Cloud. These products allow enterprises to launch multichannel marketing campaigns, build brands, and gain customer insights. A minority of revenue comes from Adobe’s publishing segment.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ADBE:NAS

Using a discounted cash flow model we generated an intrinsic value of $184.05 (USD) for ADBE:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ADBE:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $184.05 1% 5% 1% 5%
WACC (or Ke) 9.97 $216.28 $159.92
Terminal Growth Rate 3.00 $162.89 $212.29
Tax Rate 0.07 $193.57 $174.53
Cash Flow 7,390,456,000 $175.04 $193.06
Capital Expenditures -184,799,000 $183.85 $184.24
Long Term Debt 1,916,591,000 $184.24 $183.85

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $529.11 (USD) for ADBE:NAS. We also generated a valuation of $232.21 (USD) using other metrics and comparables.
The comparable companies were Autodesk (ADSK:NAS), Salesforce.com (CRM:NYS), ServiceNow (NOW:NYS), Red Hat (RHT:NYS) and Square (SQ:NYS).

Company ADBE:NAS End Date Value
Earnings/Share $5.20 (USD)
Book Value/Share $19.18 (USD)
Sales/Share $18.14 (USD)
Cash Flow/Share $8.09 (USD)
EBITDA/Share $6.49 (USD)
Price Based on Comps Adjustment Factor (%)
$691.48 (USD) -15.3
$387.92 (USD) -19.9
$183.62 (USD) 76.1
$799.74 (USD) -51.9
$863.24 (USD) 21.3
ADBE:NAS Ratios Used Average Values ADSK:NAS CRM:NYS NOW:NYS RHT:NYS SQ:NYS
43.51 PE Ratio 132.98 0.00 147.28 0.00 118.68 0.00
11.80 PB Ratio 20.23 0.00 7.13 31.29 21.81 20.67
12.47 PS Ratio 10.12 11.79 8.41 12.78 10.13 7.52
27.95 PCF Ratio 99.84 194.16 33.64 44.45 33.71 193.21
34.47 EV to EBITDA 4054.18 0.00 60.12 291.68 47.40 15817.51

Multiples

Using a multiples approach we generated a valuation of  $226.49 (USD) for ADBE:NAS

Company ADBE:NAS End Date Value
Earnings/Share $5.20 (USD)
Book Value/Share $19.18 (USD)
Sales/Share $18.14 (USD)
Cash Flow/Share $8.09 (USD)
EBITDA/Share $6.49 (USD)
Price Based on Comps Adjustment Factor
$317.30 (USD) 0
$144.35 (USD) 0
$184.51 (USD) 0
$246.09 (USD) 0
$240.20 (USD) 0
Ratios Ratio Average
PE Ratio 61.02
PB Ratio 7.53
PS Ratio 10.17
PCF Ratio 30.41
EV to EBITDA 37.03

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ADBE:NAS for the last 10 years was  7.30

We ran the Adjusted Book Value for  ADBE:NAS and generated a book value of  $19.20 (USD)
By multiplying these we get an adjusted valuation of  $140.07 (USD)

Analyst Data

In the Stockcalc database there are 7 analysts that provide a valuation for ADBE:NAS. The 7 analysts have a concensus valuation for ADBE:NAS for 2019 of $290.14 (USD).

ADBE:NAS Adobe

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
7 2 0 4.5000 Outperform 2019-1-24

Current Price: 244.95 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 7.81 9.58 11.42
# EPS Analysts 10 9 3
Mean Revenue 11,093.00 13,157.90 15,179.50
# Revenue Analysts 8 7 3
Mean Target Price 290.14
Mean Cash Flow 9.45 11.31 12.89
Mean EBITDA 4,820.50 6,088.50 7,175.20
Mean Net Income 3,900.00 4,841.10 6,193.20
Mean Debt Outstanding -1,640.00 -5,829.90 -13,838.80
Mean Tax Rate 10.05 13.00 18.00
Mean Growth Rate 26.58
Mean Capital Expenditure 290.30 317.50 327.40

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Intuit (INTU:NAS) Fundamental Valuation Report

Fundamental Valuation Report

Intuit(INTU:NAS)

Technology:Software-Application

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$212.36 (USD) 01/11/2018

Weighted Valuation
$213.01 (USD)

Overall Rating
Fairly valued to slightly Undervalued by 0.3%

Valuation Models Analyst Consensus: $223.43 (USD)
(in order of importance) Adjusted Book Value: $213.17 (USD)
Multiples: $181.46 (USD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation

Company Overview (INTU:NAS USD)

Price 212.36
Range 207.81 – 212.59
52 week 151.63 – 231.32
Open 210.81
Vol / Avg. 1.37M/1.68M
Mkt cap 54.58B
P/E 45.77
Div/yield 1.56/0.01
EPS 4.64
Shares 258.67M
Beta 1.20

Company Description

Intuit develops and markets well-known and trusted software products such as QuickBooks for small-business accounting, TurboTax for preparing personal tax returns, and Mint for managing personal finances. The firm is targeting the additional needs of small businesses with payroll and payment processing products in addition to growing its self-employed user base. Intuit was founded in 1983 and is based in Mountain View, California.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for INTU:NAS

Using a discounted cash flow model we generated an intrinsic value of $132.72 (USD) for INTU:NAS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

INTU:NAS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $132.72 1% 5% 1% 5%
WACC (or Ke) 9.45 $158.23 $114.06
Terminal Growth Rate 3.00 $116.21 $155.28
Tax Rate 0.19 $140.72 $124.71
Cash Flow 3,079,700,000 $125.99 $139.45
Capital Expenditures -160,400,000 $132.40 $133.04
Long Term Debt 1,000,000,000 $132.91 $132.52

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $272.03 (USD) for INTU:NAS. We also generated a valuation of $237.24 (USD) using other metrics and comparables.
The comparable companies were Autodesk (ADSK:NAS), Fortinet (FTNT:NAS), ServiceNow (NOW:NYS), Square (SQ:NYS) and Workday (WDAY:NAS).

Company INTU:NAS End Date Value
Earnings/Share $4.64 (USD)
Book Value/Share $9.10 (USD)
Sales/Share $22.85 (USD)
Cash Flow/Share $8.09 (USD)
EBITDA/Share $6.80 (USD)
Price Based on Comps Adjustment Factor (%)
$733.30 (USD) -50.5
$223.10 (USD) 0.0
$263.81 (USD) 28.6
$332.75 (USD) -60.4
$396.72 (USD) -23.4
INTU:NAS Ratios Used Average Values ADSK:NAS FTNT:NAS NOW:NYS SQ:NYS WDAY:NAS
45.47 PE Ratio 158.04 0.00 158.04 0.00 0.00 0.00
23.19 PB Ratio 24.52 0.00 17.82 36.12 27.87 16.26
9.23 PS Ratio 11.54 12.64 8.81 13.89 10.76 11.63
26.08 PCF Ratio 181.93 518.54 23.88 45.00 267.15 55.11
29.81 EV to EBITDA 234.09 0.00 58.30 409.88 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $181.46 (USD) for INTU:NAS

Company INTU:NAS End Date Value
Earnings/Share $4.64 (USD)
Book Value/Share $9.10 (USD)
Sales/Share $22.85 (USD)
Cash Flow/Share $8.09 (USD)
EBITDA/Share $6.80 (USD)
Price Based on Comps Adjustment Factor
$200.70 (USD) 0
$230.02 (USD) 0
$151.02 (USD) 0
$171.36 (USD) 0
$154.19 (USD) 0
Ratios Ratio Average
PE Ratio 43.25
PB Ratio 25.28
PS Ratio 6.61
PCF Ratio 21.18
EV to EBITDA 22.66

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  INTU:NAS for the last 10 years was  23.42

We ran the Adjusted Book Value for  INTU:NAS and generated a book value of  $9.10 (USD)
By multiplying these we get an adjusted valuation of  $213.17 (USD)

Analyst Data

In the Stockcalc database there are 7 analysts that provide a valuation for INTU:NAS. The 7 analysts have a concensus valuation for INTU:NAS for 2019 of $223.43 (USD).

INTU:NAS Intuit

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
4 4 1 3.5000 Hold 2018-10-31

Current Price: 212.36 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 6.47 7.28 8.36
# EPS Analysts 9 9 2
Mean Revenue 6,615.20 7,307.60 8,082.30
# Revenue Analysts 7 7 2
Mean Target Price 223.43
Mean Cash Flow 7.57 8.43 9.20
Mean EBITDA 2,299.30 2,590.50 2,990.00
Mean Net Income 1,686.70 1,890.10 2,178.00
Mean Debt Outstanding -2,215.50 -3,604.80
Mean Tax Rate 23.00 23.00 23.00
Mean Growth Rate 14.51
Mean Capital Expenditure 156.70 190.40 200.00

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.


Salesforce.com (CRM:NYS) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Salesforce.com $125.33 (USD) Close Price as of 07/03/2018

Based on the analysis conducted in this report, Salesforce.com, (CRM:NYS) is found to be  Fairly valued to slightly Undervalued.

Company Salesforce.com
Symbol:Exchange CRM:NYS
Industry Technology:Software-Application
Close Price/Date $125.33 (USD) 07/03/2018
Weighted Average Valuation $126.70 (USD)
Summary CRM:NYS is found to be  Fairly valued to slightly Undervalued by 1.1% using the 2 valuation models shown below.
Valuation Models Used Analyst Consensus: $131.85 (USD)
(in order of importance) Adjusted Book Value: $118.99 (USD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Undervalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

Salesforce.com Valuations