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P/E is the earnings multiple, not revenue. Your assuming high margins is doing a lot of legwork here. Often untrue for growing startups.
by tgma 2y ago
P/E is the earnings multiple, not revenue. Your assuming high margins is doing a lot of legwork here. Often untrue for growing startups.
- encoderer 2y agoIt’s the growing part that increases the multiple.
- tgma 2y agoSure, I was not commenting on the deal per se, but that specific argument to compare Alphabet P/E with Wiz revenue multiple of Alphabet is a deeply flawed one, and is all too common among non-finance people.
- deleted 2y ago[deleted]