Fresh out of the @mjmauboussin oven is a paper titled "The Impact of Intangibles on Base Rates"
Key finding: Companies with higher intangibles asset intensity tend to have higher growth rates. The dispersion in growth rates is also higher for them.
Link: https://t.co/0u1dk0h0UK
More from Valuation
When we put a high multiple to sales, the most important thing to worry about is - what could disrupt those cash flows. A lower multiple to sales (like a 1x or 2x) justifies Yo-Yo cyclicality and 10x sales implies relatively stable gross margins, cash flow and business economics.
It's amazing \U0001f60a 25% NP
— Avinash (@Aviral_Bharat) February 17, 2022
$8b revenue
$2b Profit
$92b MCap
At 11 times revenue, it seems to be cheap compared to\U0001f609