BVP Cloud Index end of April 2018

The BVP Cloud Index is a market cap weighted index that tracks the activity of the
leading public cloud companies. There are currently 51 companies in the index.

  • The Index is up 23% YTD (from 12/29/2017 to 4/30/2018).

  • The Index is up 505.7% (27.8% annualized) since 1/1/2011.

  • Close to sixty percent of the gains in the Index have come in just the last 16 months.

  • The Index is currently trading at an average 8.5X (EV/2018 Rev). Previous high in 2015 was 8.0X.

  • In early 2016, the Index lost 17% in one day. It lost 35% in six weeks. Multiple was 3.7X.

The BVP Cloud Index is maintained by Bessemer Venture Partners. You can find the Index here:


Note: I track this index for purposes other than my own investing. I share it here because I know
several of you are heavily invested in some of these stocks and thought you might be interested.


It almost seems like a shame that there hasn’t been an ETF tracking this particular cloud index (similar to the recently-available Fool 100 index and its associated ETF - TMFC).

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Ears, I enjoy your posts. They are always thought provoking.

Do you know the average annual revenue growth of the BVP cloud index over the time periods listed above? I tried to find this info but couldn’t. I’m curious if the change in valuation has been due to anything in particular since 2011 or if we are currently in a market fad (or maybe a bit of both).


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Your work is retrospective.


Hi Ethan,

Good question. I don’t have exactly what you’re looking for, but if you go by what Bessemer
says in their State of the Cloud 2018 presentation, it appears they think the market is overvalued
when it’s above ~7X. Keep in mind their EV/ 2018 Rev multiple is a growth multiple because it’s using
next twelve month’s Rev (NTM) – it’s not a multiple of past twelve month’s sales.

See slide 31: