Snowflake Inc., the cloud-computing based data storage and analysis company is currently valued at approximately 41 billion USD.
I estimate Snowflake's intrinsic worth is 100 billion USD in five years time and 200 billion USD in 10 years time.
My assumption, of course is that cloud computing will continue to develop and grow exponentially and that governments will not forcefully force a slowdown in cloud computing, arguably the most exciting market of our time.
I also assume that Snowflake will have around 14 billion USD in revenue and will make 4 billion USD profit a year, 10 years from now. And Snowflake's revenue will still be growing at more than 10 % a year in 10 years time.
So if one applies Price/Earnings multiple of 50, which is reasonable compared to multiples previously applied to Amazon and cloud computing's yearly revenue of more than 100 billion USD currently and projected prolonged period of above 10 % cloud computing revenue growth, this gets Snowflake's market capitalisation to my aforementioned estimate of 200 billion USD in 10 years time.
Warren Buffett's Berkshire Hathaway has invested more than 1 billion USD in Snowflake Inc.
And yes, I agree with the Oracle of Omaha, a nickname for Warren Buffett.
Clout computing is the future.
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