The market is always estimating longterm interest rate and inflation through Growth stocks.
Growth stocks are nothing but leverage bets on above two factors.
Be careful always betting on Growth stocks as there is huge embedded MACRO bet coupled with micro.
Stagflation, take care.
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