I’ve recently wondered how mgmt teams decide which additional metrics to report - specifically NDR, lots of notable names missing from your broader set spreadsheet. Is it follow the leader, a metrics arms race, or don’t ask don’t tell?
You have SoFi at 11x EV/NTM. Are you counting deposits as debt to get that? The MC is 7.4B, they have more cash than debt so EV would be around MC w/o deposits, and they are projecting around 2.4B in revenue for 2024. That’s only 3x.
"Hiring declines, optimization pushes, and buyer’s remorse."
It's gonna be an interesting 2H24, isn't it?
I've been thinking about how to capitalize on these very issues.
It's looking like we're going to have to venture out beyond selling to each other in the tech space to make ends meet.
Great insights as always.
I’ve recently wondered how mgmt teams decide which additional metrics to report - specifically NDR, lots of notable names missing from your broader set spreadsheet. Is it follow the leader, a metrics arms race, or don’t ask don’t tell?
P. S. - congrats on 50k. That’s a lot of ice cream for Walter.
EV/sales isn't really a good way to value fintech names that have deposits as a part of the EV.
Can you say more about that please
You have SoFi at 11x EV/NTM. Are you counting deposits as debt to get that? The MC is 7.4B, they have more cash than debt so EV would be around MC w/o deposits, and they are projecting around 2.4B in revenue for 2024. That’s only 3x.
Would you mind taking a look here and letting me know if the definition of EV is right in this context?
https://docs.google.com/document/d/1HrLsuXGPs862fqkBCITdYw5bEf1MnXKYIQpvSEwb4NE/edit#heading=h.tg7x64ndb6ey
Formula looks right to me. Sofi's last balance sheet had 3.55B in debt, 3.69B in cash/cash equivalents. So EV would be 7.4B + 3.55B - 3.69B = 7.26B EV
7.26B EV / 2.4B 2024 REV = 3x EV/Sales