Figma Valuation

Adobe Inc bought private cloud-based designer software producer for Figma at 20 billion USD, which values Figma at 50 times revenue.

Many value investors, private equity investors and financial media are questioning whether Figma is really worth 20 billion USD with many of them saying Figma's "intrinsic worth" or "real" value is a fraction of that amount.

I would offer a slightly different angle. Adobe Inc is valued by public markets at 140 billion USD. And the main reason Adobe paid such a high sum for Figma is because Adobe sees Figma's cloud-based designer software producer as a really credible threat for its own business.

And just a reminder: Adobe's market capitalisation stood a t approximately 300 billion USD only one year ago.

So potentially Figma could be worth 300 billion USD or even more since videos, pictures, where both Adobe and Figma are active are the current and future mega trends since graphical content is easier on people's eyes.

And whoever thinks the probability for this is low sbould just remember what Apple with the iPhone did to Blackberry or what Google, now part of Alphabet Inc did to Yahoo or what Microsoft did to IBM if one goes further back into the past.

In my personal opinion, Figma is worth around 10 billion USD.

But judging from the media content, if I was Adobe Inc, I would also have bought Figma. The danger for Adobe was just too great from Figma, a nimble, agile and quick tech startup.

0.0001% probability on a long enough time-line could become a 100 % probability.