{"id":52570,"date":"2021-03-12T12:43:00","date_gmt":"2021-03-12T11:43:00","guid":{"rendered":"https:\/\/techma.bakertilly.es\/?p=52570"},"modified":"2025-03-12T11:53:33","modified_gmt":"2025-03-12T10:53:33","slug":"ss-a2-valuation-with-multiples-in-software-applications","status":"publish","type":"post","link":"https:\/\/techma.bakertilly.es\/en\/crece-un-56-la-valoracion-por-multiplos-en-empresas-cotizadas-del-sector-software-applications\/","title":{"rendered":"Valuation multiples on listed companies in the Software Applications sector grow by 56%"},"content":{"rendered":"

<\/p>\n\n\n\n

<\/span>Analysis of the main variables<\/span><\/h2>\n\n\n\n

<\/span>Revenue growth<\/span><\/h3>\n\n\n\n

Despite the current Covid-19 situation, most listed companies have continued with double-digit growth. For example, the average has reached 20% and the median 19%. In addition, more than 60% have grown above 15%. <\/p>\n\n\n\n

\"valuation<\/figure><\/div>\n\n\n\n
\"Revenue<\/figure><\/div>\n\n\n\n

According to the Top Revenue Growth<\/strong>, Cloudera <\/a>is the one showing the highest increase, by 70%. Cloudera, is a software company<\/a> based in the US that provides a software platform for data engineering and warehousing, machine learning and analytics that runs in the cloud or on-premises.<\/p>\n\n\n\n

<\/p>\n\n\n\n

\"cloudera<\/figure><\/div>\n\n\n\n

<\/p>\n\n\n\n

<\/span>Profitability<\/span><\/h3>\n\n\n\n
\"graph<\/figure><\/div>\n\n\n\n

Gross margin shows an overall high level reaching an average of 70%. However, most EBITDA margins (>50% of the companies) are negative, with an average of -1% and a median of -5%.<\/p>\n\n\n\n

\"graph<\/figure><\/div>\n\n\n\n

<\/p>\n\n\n\n

\"AppFolio<\/figure><\/div>\n\n\n\n


<\/p>\n\n\n\n

In terms of EBITDA Margin Top<\/strong>, AppFolio <\/a>shows the largest increase, up 73%. AppFolio offers web-based property management software for residential property managers to market, manage and grow their businesses.<\/p>\n\n\n\n



<\/p>\n\n\n\n

<\/span>Valuation with multiples analysis<\/span><\/h2>\n\n\n\n

<\/span>

EV\/revenue vs. EV\/EBITDA<\/span><\/h3>\n\n\n\n

In general, the EV\/EBITDA multiple is usually more meaningful than the EV\/revenue multiple because it shows less dispersion. In this case, EV\/EBITDA cannot be used as a benchmark, as more than 50% of companies have negative EBITDA. The EV\/revenue multiple is extremely high, with a mean of 14 times and a median of 13 times.<\/p>\n\n\n\n

\"Valuation<\/figure><\/div>\n\n\n\n
\"EV\/Revenues<\/figure><\/div>\n\n\n\n

<\/p>\n\n\n\n

\"appian<\/figure><\/div>\n\n\n\n

According to the Top EV\/Rev Multiple<\/strong>Appian is a low-code automation platform for building enterprise software applications faster. With Appian, you get the speed of low-code development with the power of intelligent automation in a unified and trusted cloud platform.<\/p>\n\n\n\n

<\/p>\n\n\n\n




<\/p>\n\n\n\n

<\/span>Annual valuation performance by multiples 2020 vs 2019<\/span><\/h3>\n\n\n\n

As we can see in the graph, valuation multiples have increased over the last year at an incredible rate, the average has increased by 56% while the maximum has reached a difference of 116%. There are no major differences between the lower values.<\/p>\n\n\n\n

As for the median, it has increased by more than 48% and income growth has stabilised at its highest and lowest values. However, the median and average growth have declined markedly.<\/p>\n\n\n\n

\"Annual<\/figure><\/div>\n\n\n\n
\"graph<\/figure><\/div>\n\n\n\n

<\/p>\n\n\n\n




<\/p>\n\n\n\n

<\/span>Final Conclusions <\/span><\/h3>\n\n\n\n

REVENUE GROWTH<\/span><\/strong>The average growth has declined significantly year-on-year possibly (31% ->19% on average) due to the current market situation, although companies continue to grow at very healthy rates.<\/p>\n\n\n\n

BENEFIT<\/span><\/strong>Most of the companies show a high gross margin (69%) but EBITDA margins show negative values in more than 50% of the companies analysed, which leads to the hypothesis that these companies are in a race to consolidate their market share by combining high growth with negative margins.<\/p>\n\n\n\n

EV\/ INCOME vs.<\/strong> EV\/ EBITDA<\/strong><\/span>Ev to Revenue multiples show extremely high values (52x). Ev to EBITDA multiples are not consistent due to widespread negative EBITDA.<\/p>\n\n\n\n

EV to EVOLUTION OF REVENUE<\/strong><\/span>The mean of the multiples has increased considerably, from 9.2 to 14.2, as has the median, from 8.8 to 13.1.<\/p>\n\n\n\n

ALTHOUGH THE MARKET IS GROWING AT A SLOWER PACE, THE MULTIPLIERS ARE INCREASING <\/span><\/strong><\/p>\n\n\n\n

<\/p>\n\n\n\n



<\/p>\n\n\n\n

<\/span>Listed companies Analysis

<\/span><\/h2>\n\n\n\n

<\/span>Data for Analysis<\/span><\/h3>\n\n\n\n
\"This<\/figure>\n\n\n\n
\"graph<\/figure>\n\n\n\n
\"graph<\/figure>\n\n\n\n

Source: Gurufocus 21\/02\/23<\/p>\n\n\n\n

Note: Valuation multiples below 0.0 and above 75.0 have been considered non-significant and the EV\/EBITDA statistics above have not been taken into account, they are indicative only.<\/p>\n\n\n\n

<\/p>","protected":false},"excerpt":{"rendered":"

An\u00e1lisis de las variables principales Crecimiento de los ingresos A pesar de la situaci\u00f3n actual del Covid-19, la mayor\u00eda de las empresas que cotizan en bolsa han seguido con un aumento de dos d\u00edgitos. Por ejemplo, la media ha alcanzado el 20% y la mediana el 19%. Adem\u00e1s, m\u00e1s del 60% ha crecido por encima […]<\/p>\n","protected":false},"author":8,"featured_media":52659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[2277],"tags":[1588,1993],"sectores":[2212],"tipo-contenido":[2260],"class_list":["post-52570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-multiplos-de-empresas-cotizadas","tag-software-applications","tag-valoracion-por-multiplos","sectores-enterprise-software","tipo-contenido-noticias"],"acf":[],"_links":{"self":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/posts\/52570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/comments?post=52570"}],"version-history":[{"count":0,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/posts\/52570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/media\/52659"}],"wp:attachment":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/media?parent=52570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/categories?post=52570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/tags?post=52570"},{"taxonomy":"sectores","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/sectores?post=52570"},{"taxonomy":"tipo-contenido","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/tipo-contenido?post=52570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}