CRMNEUTRAL

CRM FCF Yield Analysis

8.6%

Higher than 95% of Technology sector peers

Updated 101h ago·SEC filings & market data

Key Takeaway

A free cash flow yield of 8.9% means Salesforce generates $8.90 in cash from operations minus capital spending for every $100 of its stock price, a measure of potential return to investors.

Sector Performance

95th percentile

CRM

8.6%

Sector Median

2.5%

Sector Avg

3.9%

Prior Period

8.9%(Aug 2026)

↓ Declining

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Deep Analysis

A free cash flow yield of 8.9% means Salesforce generates $8.90 in cash from operations minus capital spending for every $100 of its stock price, a measure of potential return to investors.

This sits well above the sector median of 2.4%, placing the stock in the 92th percentile among technology peers, so its cash generation is much stronger than most comparable companies. The trend is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so there is no historical direction to assess. The combination of a high current level with no trend data suggests the strong yield is a positive signal, but you cannot confirm whether it is improving or deteriorating. For investment risk, the high absolute yield offers a margin of safety, yet the missing trend leaves uncertainty about sustainability. This metric supports the overall NEUTRAL verdict because a high cash yield alone does not resolve the stock’s broader outlook without a visible trend.

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 8.6% compares to a Technology sector median of 2.5%, placing it in the 95th percentile.

Who are CRM's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: ANSS (2.6%), AFRM (2.7%), APH (2.7%), ASML (3.0%), AMAT (3.1%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

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.