Bert's article on ESTC

Bert Hochfeld latest article on ESTC.…

But the fact is that Elastic, which I believe likely to have a mid-40% CAGR over the next 3 years, even including a couple of quarters of blip from the current world-wide economic contraction, has a far lower valuation than its peers - and to an extent, that was true even before the virus panic cut down all valuations. Right now, the shares are valued at about 50% below average for the company’s growth cohort with a current EV/S of 6.7X based on forward unrevised revenues, and that is the biggest discount to average valuation amongst all of its peers whose growth is expected to be 40%-50%.


Sometimes Mr Market just does not fancy a particular company / equity for reasons unclear. In the same way that the market assigns darling status to the likes of TTD. Either way it is not financially healthy to bet against the market