Salesforce generates more free cash flow than ServiceNow and Workday combined. So why does it trade at one-third of their valuation?

I have been trying to understand why this stock is down 28% while the business looks like this.

$14.4 billion in free cash flow. $72 billion in contracted future revenue. An AI product that went from zero to $800 million ARR in 18 months. The CEO just raised $25 billion in debt specifically to buy back 26% of the company at current prices.

And yet it trades at 13x free cash flow. ServiceNow is at 38x. Microsoft at 36x. Workday at 25x. Salesforce generates more free cash flow than ServiceNow and Workday combined and trades at a third of their multiples.

I understand the bear case. Microsoft is bundling Copilot into Office 365 at near-zero marginal cost. If a CFO is cutting budgets and already paying for Microsoft the Salesforce conversation gets harder. Revenue growth is 10% not 30%. The debt they took on for buybacks is real money they owe.

But I keep getting stuck on one thing. The CEO went on an earnings call after a 41% EPS beat and said publicly that these are "low prices." Then immediately raised $25 billion in debt to prove it. That is not a hedge. That is a specific statement.

So my genuine question is what am I missing?

Is the market correctly pricing a structural AI threat that the Agentforce numbers are not yet showing? Or did algo traders tank this on slightly cautious forward guidance and the fundamentals have not caught up yet?

Not financial advice. Just trying to stress test the thesis before forming a view.

I put together a full breakdown in a report of the filing DCF model, competitive analysis, 16-signal monitoring framework in my profile bio.