These are the 10 most richly valued tech stocks — at over 50x annual revenues (Mar 2022)

Tech stocks have boomed in the past couple years since Covid, reaching stratospheric heights. A strong private fundraising environment has helped them along.

As of data from yesterday (Thu, Mar 10, 2022), let’s take a look at the 10 most richly valued tech stocks by price to sales — the ratio between the revenue and the market cap of the company (we’ve restricted the companies to a min current market cap of $10bn).

Here’s the detailed analysis on Fidap.

Tech companies by PS ratio

Snowflake and Bill.com are the only two tech companies that command a PS of greater than 50, according to our data. Here are the details —

Interesting to note —

1. All of the companies listed are B2B — there’s not a single B2C company in the mix.
2. Six of the ten are technical infrastructure companies
3. Nine of the ten have year over year quarterly revenue growth rates of over 50% (Atlassian is at “only” 37%)
4. All of the companies have double digit negative 3 month returns (led by Cloudflare at -46%)

What if we relaxed the $10bn market cap floor to $1bn? Here are the new numbers —

I haven’t heard of most of the companies above. Only Snowflake remains from our existing list.

Here’s the SQL query from Fidap that got us these results —

SELECT
    ticker,
    name,
    ps,
    round(revenueusd / 1e9,2) as rev_bn,
    round(marketcap / 1e9,2) as mc_bn,
    round(rev_yoy*100,2) as rev_yoy,
    round(pc_3m*100,2) as pc_3m
FROM
    fidap.US_EQUITIES.tickers
WHERE
    marketcap > 1e10
    AND ps > 0 and sector='Technology'
ORDER BY
    ps desc
LIMIT
    10