Most SaaS IPOs in recent years have been at 10x - but almost none of them were consumer SaaS so it's hard to say how the markets will treat them. It's not unus

Most SaaS IPOs in recent years have been at 10x - but almost none of them were consumer SaaS so it's hard to say how the markets will treat them. It's not unusual that later stage companies will trade at lower multiples, and as companies become more mature their multiple drops. A good way of looking at it is in terms of future revenues, what's the chance of company doubling their revenue in the next couple of years ? For Walmart it's almost negligible, for Google it's small but not completely out of the realms of possibility but for Evernote and DropBox it's actually quite high. They're the leading products in immature markets.