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Re: RandyKCMO post# 270

Monday, 10/09/2017 12:20:26 AM

Monday, October 09, 2017 12:20:26 AM

Post# of 684
Randy--I have a question regarding how a software-as-a-service company is valued. I have read that Wall Street values these companies on the basis of revenue generation. In other words, the market cap would be a certain multiple of revenues. Some people call this the price/sales ratio. Adobe, for instance, has a P/S ration of around 11. Salesforce has a P/S of around 8. Legacy software companies, such as Oracle, are valued lower, having a P/S ratio of 3-6. How do you think ORHB's valuation would fit into this valuation model given that it is on the pink sheets and has no "track record"? Also, do you know of any particular compettition for ORHB in this space?