Morning Thoughts...
Telegram @AlliesFin
New Gen Tech :
How to Value - With majority of the new-age stocks still incurring losses, the traditional valuation comparisons aren’t possible and sales multiple has become the preferred multiple. It is important to note the characteristics of revenue for each individual company prior to using revenue multiple based comparisons as these companies belong to different industry verticals and have significantly different revenue recognition approaches. We suggest due consideration to be given to revenue characteristics – competitive moats, network effects, gross margin profile, growth rate, capex/WC requirements and recurring nature of business.
By: via @AlliesFin Serve Stock Market
