For 15.7 Billion.
Alteryx up over 5% pre-market (as of this post.)
https://www.businessinsider.com/salesforce-to-acquire-tablea…
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In think it says Tableau up 35% pre-market.
MoneySlob
Blurry eyes; got up at 4:30am to sell ESTC but didn’t
Just got breaking news salesforce is down almost 5%
Looks like the purchase price was about $16 B, and they have revenue run rate of about $1.2B. So a P/S of around 13 for a company growing 15% and not cash flow positive last quarter.
That is a lot more expensive, compared to growth rate, than any stock followed on this board, including Zoom.
Jim
6 Likes
To supplement Jim’s point,
DATA has 15% growth at 85% margins for a gross profit of 12.8% which would be one of the lowest gross profit growth rates on this board
At a P/S of 13, our stocks would be expecting a 25%+ gross profit rate.
Based on this, I would conclude that Salesforce paid 2x the market value. Of course, there are plenty of reasons that Salesforce may do that. But it is yet another data point on the current market for valuation.
https://imgur.com/a/4BXjlan - P/S vs Gross Profit Growth
Just a Fool
2 Likes
A mention of this and other SaaS stocks
https://www.investors.com/news/technology/saas-stocks-cloud-…
1 Like