Last May there were only 3 software companies trading >10x NTM rev. Today that figure is 10
Last May there were only 3 software companies trading >10x NTM rev. Today that figure is 10
Last May the median multiple for the highest multiple software companies (top 5) was 10.1x. Today the top 5 median is 16x
Last May the median software multiple was 5.0x, today it's 5.2x
Today feels like a bloodbath in software (and it is), but sentiment was worse just 12 months ago...The most expensive software companies still have a lot of room to drop if we're going back to May '23
Below is my May 23 post:
👀 There's now only 3 cloud software companies trading >10x NTM rev. Snowflake at 15.2x, Veeva at 10.8x and Cloudflare at 10.5x
$Snowflake(SNOW)$ at 50x NTM FCF, $Veeva(VEEV)$ at 30x NTM FCF, and $Cloudflare, Inc.(NET)$ at 230x FCF (NTM FCF margins of ~5%)
$Datadog(DDOG)$ dropped out of the top 10 multiples for first time in last 18+ months
https://x.com/jaminball/status/1796348896698122374
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- jazzyloo·06-04Interesting comparisonLikeReport