This article was highlighted for PRO subscribers, Seeking Alpha’s service for professional investors. Find out how you can get the best content on Seeking Alpha here.
Software has held up incredibly well throughout the COVID pandemic. So well, in fact, that EV/Sales multiples have expanded to five-year highs even as median growth rates are at five-year lows:
Source: Factset and JP Morgan Estimates
While it must be fun to own the COUP's and DDOG’s of the world at 35x sales, if growth expectations continue to deteriorate it might be prudent to own a software