"Valuing" our companies

Here is a select list of EV/TTM Revenue for some of our companies: I’m not all suggesting this is the be-all and end-all metric. Far from it. After all, it’s not nearly as important as what matters several quarters and years from now depending on your time frame, and trying to say that Company X’s multiple is justified relative to another is such an inexact science due to the impossibility of accurately prognosticating revenue, gross margins, profitability… to say nothing of external force majeure like the end of QE and a pandemic.

It’s also true that even if one could accurately value a company now and in the future so as to determine fair value, it may not have any relationship to the stock price. Given enough time and an efficient market, one would think fair value would be reflected in stock price. But we know this isn’t true, since no one has an infinite time frame and I don’t trust the “efficiency” of a market that is impacted by Joe Public Retail Investor and some very large institutions adept at manipulating price either in good faith transactions or outright strategic maneuvers.

SNOW: 77.05
S: 53.66
NET: 47.42
DDOG: 43.76
ZS: 43.73
MNDY: 29.99
U: 29.75
ZI: 29.60
CRWD: 28.42
AMPL: 25.22
OKTA: 25.06
PATH: 20.25
PLTR: 17.22
SNAP: 13.63
TWLO: 11.84
UPST: 11.48

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