Snowflake currently trades at 51 times forward (2021) revenue, with 1.1 billion expected revenue and 56 billion EV
In July 2020, DDOG was trading at 96 dollars with 330 million shares outstanding. This gave them an EV of 31.6 billion. DDOG achieved 603 million in revenue in 2020, implying that they were trading at 52 times forward revenue.
Hey Ruben,
I also wanted to comment on this statement, it looks like you’re looking at SNOW’s EV/S for the next twelve months (NTM) to calculate the current forward EV/S (as you should). But when you compare that to DDOG, you’re taking stats from July, but using the full year 2020 rev (which would be 2 quarters from the past, and 2 quarters looking forward, so not true forward EV/S). To get the forward EV/S for DDOG with the July 2020 stats you used for EV ($31.6B), you should take the NTM revenue from July 2020.
3Q20 - $155M
4Q20 - $178M
1Q21 - $201M (estimated with 13% QoQ growth, seems to be the consensus to get a low 60% growth in 2021)
2Q21 - $227M (same)
For a total NTM rev of $761M, giving a forward EV/S for DDOG from last July 2020 of 41.5 (and of course MUCH lower than that now).
I’ve also been one that wouldn’t touch SNOW because of the huge valuation, I’ve just never seen much room for stock price appreciation at even the current valuation, forward EV/S over 50, even AFTER this harsh high growth rotation we’re witnessing. Their numbers are impressive, but for me, not impressive enough for their current price. Their price/valuation will have to drop farther for me to find a spot for them in my portfolio.