Gurley: SaaS at 6x revenue is not automatically cheap as industries mature
Bill Gurley · Ep14. Public Market Volatility, AI Air Pocket, $GOOG Ruling | BG2 w/ Bill Gurley & Brad Gerstner · Bg2 Pod · Aug 9, 2024 · at 8:45
Benchmark partner Bill Gurley critiques Silicon Valley investors who anchor to historical peak multiples and assume 6x revenue represents a floor for software valuations.
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“I hear people say oh my God, SAS is super cheap at six times revenue. And I'm like, you know, I've worked, I've seen industries mature where, where six ain't a stopping point, you know? And of course, you got to move on to net income and earnings and cashflow and get out of this revenue mindset.”
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