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HI Ears,

Thanks for posting the Bessemer's State of the Cloud 2021.

I’ve been meaning to get your thoughts and feedback about a Growth Value equation, created by a poster at Saul’s board on 3/3/2021, who applied it to some of the SaaS companies included in the BVP Cloud listing.
https://boards.fool.com/valuing-growth-34768591.aspx?sort=wh...

Growth Value equation:

GV = EV / GP / % Revenue Growth

Given,

GV: Growth Value where > 1 is HIGH and < 1 is REASONABLE

EV: Enterprise Value

GP = Gross Margin * annualized quarterly revenue from most recent quarter

% Revenue Growth = Y-o-Y growth in quarterly revenue expressed as a percentage, e.g., 20%, not 0.20.

My Google search cannot find this GV equation anywhere which raises my question if it’s legit or reasonable. I’ll leave it up to you for any reply here or at the thread above. Mahalo.

Regards,
Ray
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