2 ms·
30x arr (not cash flow) is unbelievably high multiple in the current environment
by dilyevsky 2y ago
30x arr (not cash flow) is unbelievably high multiple in the current environment
- samspenc 2y agoYeah, if we assume they are at 20% profit margin like FAANG or other tech / finance companies, at $1B ARR, they are making $200M net income per year. At 30-40 PE, they would be valued at $6-8B max. In reality, they are most likely losing money at this point like most startups, might take them a few years to hit profitability. But that doesn't seem to have stopped previous startups from commanding insane valuations, so maybe Wiz is able to do that too.
- rattray 2y agofacepalm – mixed up arr & cashflow as I was going to bed. thank you.