CRMNEUTRAL

FCF Yield

11.7%

Higher than 88% of Technology sector peers

Updated 513h ago

Sector Performance

88th percentile

CRM

11.7%

Sector Median

2.7%

Sector Avg

-0.2%

📊

Deep Analysis

Free cash flow yield measures the cash a company generates after expenses relative to its stock price — a higher yield means you get more cash back per dollar invested.

Salesforce’s current 11.7% FCF Yield is well above the technology sector median of 3.2%, placing it in the 91st percentile among peers. The trend has been increasing over the last eight quarters, with a year-over-year improvement of +27.2% and a quarter-over-quarter rise of +23.2%. A high and rising FCF Yield typically signals strong cash generation and may indicate the stock is undervalued, reducing downside risk for investors. However, the overall NEUTRAL verdict suggests other factors offset this strength, such as growth concerns or valuation in other metrics. This metric alone supports a more bullish view, but it does not contradict the NEUTRAL rating since the platform’s conclusion weighs multiple dimensions.

Frequently Asked Questions

What does the FCF Yield tell investors about CRM?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does CRM's FCF Yield compare to its sector?

CRM's FCF Yield of 11.7% compares to a Technology sector median of 2.7%, placing it in the 88th percentile.

Who are CRM's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: AMBA (2.1%), NVDA (2.0%), MODN (2.0%), APP (1.7%), AVGO (1.5%).

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

Advertisement

Master CRM's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full CRM research report

Free account — no credit card

CRM

11.7%

Sector Median

2.7%

Sector Avg

-0.2%

How CRM's FCF Yield compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.