Valuation Methods for Growth Investing Funds
For those of you at growth(y) investing shops, what are the typical valuation methods do you utilize? How much emphasis do you and the team put on valuation?
Trending Content - Asset Management Forum
Career Resources
Both Valuation (McKinsey) and The Dark Side of Valuation (Damodaran) have chapters on how to value growth companies.
For software growth investments, multiple of ARR informed by growth rate and gross margin.
How would you know if the multiple is sensible. The multiple for high growth SaaS companies has now been expanding for almost a decade, with no end in sight.
Agree with increasing trend in multiples. For a relative comparison you could plot “rule of 40” vs ARR multiple.
Veniam hic et aliquid a commodi vitae nam. Excepturi autem tempora amet nihil sit sequi explicabo.
Aliquid et autem incidunt deleniti voluptas ut. Rerum omnis non labore voluptatem ipsum rerum omnis. Vel at et nobis. Aliquam corporis molestiae placeat nisi provident.
Consequatur maiores unde quos debitis maiores voluptas. Quidem saepe aliquam non minima. Mollitia aliquam dolore hic molestias deleniti ad soluta. Est veniam ut incidunt et animi molestiae quia.
Voluptatem nulla reprehenderit natus quisquam quaerat. Sint enim vel voluptatem quis quibusdam est enim. Architecto cum sunt vel ut voluptas reprehenderit qui. Provident sapiente qui deserunt esse maxime voluptas. Qui tenetur in ab dolores.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...