Made a new addition to the portfolio on Friday, a company I have been following for a few years and have owned in the past but sold in '24 in the mid 50s due to valuation concerns making the r/r unattractive.
very comprehensive. appreciate the post. i am new to saas, just wondering is there any resources to learn about what is fair to pay for what kind of business? i mean ev/s yes, but what number and why? is it purely comparable or is there a math to it. for example, maybe it is ev/s of 4x but since it can likely double S in 5 yrs it is ev/s of 2x and assuming some profit margin, it is maybe EV/E of 20x or EV/FCF of 20x
would love to dig deeper into saas as alot of it has not moved yet and with AI, i believe SaaS could benefit
very comprehensive. appreciate the post. i am new to saas, just wondering is there any resources to learn about what is fair to pay for what kind of business? i mean ev/s yes, but what number and why? is it purely comparable or is there a math to it. for example, maybe it is ev/s of 4x but since it can likely double S in 5 yrs it is ev/s of 2x and assuming some profit margin, it is maybe EV/E of 20x or EV/FCF of 20x
would love to dig deeper into saas as alot of it has not moved yet and with AI, i believe SaaS could benefit