Originally Posted by
Harvey Specter
The multiple used is dependant on growth. Therefore if growth slows as they reach $100m ACMR, they you might bring that back a bit. I think the average for SaaS companies on the Nasdaq is about 6 but they are on average 'only' growing 40%pa. So ultimately the multiple should revert to about 6 but while they can keep revenue growth above 100%, then 10% seems fair.
* disclaimer - I am making all this up based on observations I have made. Revenue multiples are also crude as it is all about DCF - the problem with DCF and high growth companies is all the value is in the terminal value, not in the early years.