SaaS company purchases (2nd try)

It looks like the big tech companies are using the market weekness to purchase SaaS companies.

I took a look at the last 3 purchases and the valuation.

Company         P/S paid     rev. growth     PSG (P/S divided by Rev. Growth)

Apptio          8.3           24%            .33

Send            13            32%            .40

Qualtrics       20             50%           .40

It looks like we have a range of P/S of .33 (1/3) of rev. growth to .40.

Apptio having lower growth and lower gross margins, not worth quite as much.

Jim
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So if Oracle is really looking to buy NTNX, it should be higher than $65/share.

40-50% growth, using the same .4 ratio, gives us $80-109/share.

Jim

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Hi Jim,

I’m ok with Oracle paying $80-109 a share for Nutanix! however, they are notorious tightwads with acquisitions so that rumor could be fake news.

Matt

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