Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Saturday, January 8, 2022

Cloud Stocks Valuation


In my opinion, cloud computing stocks with below 40 billion USD market capitalisation valued by public markets at below Price/Sales of 12 are undervalued. For cloud stocks with market capitalisation higher than 40 billion USD the appropriate Price/Sales metric that makes them undervalued is 7.

Cloud computing stocks are usually unprofitable. If cloud stocks are valued at below Price/Earnings ratio of 43 and exhibit year on year revenue growth rate of above 14, in my opinion, they are undervalued.

Mega cap cloud stocks: Amazon, Microsoft, Alphabet

Other cloud stocks: HashiCorp, GitLab, DocuSign, Cloudera, Anet etc. 




Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)