Snowflake: hard to find a more expensive rev multiple
16/09/2020 18:35
** If you're considering shelling out $250/sh for Snowflake
SNOW.N as the software seller surges in its debut as a
publicly listed company on Weds, you will only find a few other
stocks trading at a more pricey valuation, among them electric
truck maker Nikola NKLA.O
** SNOW opened at $245 and quickly jumped to as high as
$319, briefly putting its market cap well north of $80 bln in
the biggest U.S. listing so far this year. urn:newsml:reuters.com:*:nL1N2GC1MW
** SNOW's rev jumped 174% to $265 mln last year, while its
loss nearly doubled to $348 mln
** SNOW's rev growth slowed to 121% in Q2 of 2020, but if it
theoretically manages to grow faster for the rest of this year
and repeats its 2019 growth rate, its annual revenue would reach
nearly $460 mln
** At recent price of $250/sh, SNOW is trading at around
150x that potential 2020 rev
** Among U.S. publicly listed cos with a market cap of at
least $10 bln, only three cos are currently more expensive than
SNOW's theoretical 2020 rev multiple, per Refinitiv
** Nikola is the most expensive, trading at over 90,000x
expected 2020 rev. It recently rejected fraud accusations by
short seller Hindenburg Research urn:newsml:reuters.com:*:nL4N2GC35H
Cos above $10 bln market cap with highest Price/Rev
Company Industry Price / Revenue
(Mean Estimate)
(CY2020)
Nikola NKLA.OQ Machinery 90,159.02
Liberty Broadband Media 1,263.04
LBRDA.OQ
Immunomedics IMMU.OQ Biotechnology 156.25
Moderna Inc MRNA.OQ Biotechnology 80.37
Zoom Video Comms ZM.OQ Software 51.85
10X Genomics TXG.OQ Life Sciences 47.58
Tools &
Services
Datadog DDOG.OQ Software 47.02
Shopify SHOP.N IT Services 43.13
Guardant Health GH.OQ Health Care 36.77
Providers &
Services
CrowdStrike Holdings Software 36.50
CRWD.OQ
((noel.randewich@tr.com; (415) 677 2542; Reuters Messaging:
Twitter: @randewich))