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> tech valuations have come down because the Fed has raised rates which long duration stocks like growths tech cos are extremely sensitive to. That's actually
by airstrike 4y ago
> tech valuations have come down because the Fed has raised rates which long duration stocks like growths tech cos are extremely sensitive to.
That's actually not accurate. NTM revenue multiples for software companies peaked at ~12.0x on average in October 2021. The first rate hike in this cycle happened in March 2022.
- rcme 4y agoWhile true, the market is based on forward-looking expectations. Values drop before the first rate hike if people begins expecting a rate hike.