Last september, Snowflake made history with the biggest IPO pop since at least a decade, and since then the stock has held up these early gains.
A darling of the tech industry since its founding in 2012, the company is growing impressively and reaching a half billion dollars in revenue in FY 2021, but with a valuation of $82Bn and resulting implied revenue multiple north of 150x, can Snowflake sustain this valuation for longer, let alone grow it further?
Currently losing money at even the EBITDA level, and forecasted to do so for the foreseeable future as it invests heavily in growth, Snowflake can’t adequately be valued using most common methods. Let’s instead just look at revenue multiples then:
Valutico’s broad tech revenue multiple applied to Snowflake yields a valuation of $3.5Bn using 2021 figures (2021 EV/Sales multiple applied: 5.51x), and even 2022 numbers, which assume over 100% top line growth and a 6.25x multiple only reach $7.2Bn, less than 10% of the current market cap. Snowflake is in rare company with a couple dozen companies valued at over 100x sales, but within that list the California-based cloud data warehouse is arguably the closest to becoming a household name.
Weekly valuations: Snowflake link to the valuation here
Other recent valuations: Peloton | Krispy Kreme |Bumble
About Valutico:
Valutico is the world‘s leading provider of web-based company valuation tools.
Valutico is a web based valuations platform providing the financial services industry and valuation practitioners with data-driven tools to conduct analysis more efficiently. With headquarters in Vienna and subsidiaries in the UK & USA Valutico empowers businesses and experts to perform accurate valuations in minutes while solving the issue of complex tools, lack of data sources and time consuming reporting.
Valutico provides access to reliable market data from leading financial databases, cross-checks business plans and provides useful suggestions to promote consistency and plausibility. With over 15 of the world’s leading valuation methodologies to choose from and saving experts precious time transferring results from spreadsheet to slides, Valutico is carving a new generation in valuations.
