appealie.com/high-versus-lo…
TL,DR: Higher multiples better in 2020...
...but lower multiples were better in last 4 drawdowns 2014-2019
- outperformed 4 of 6 cases
- with an average 1-month stock price outperformance of 4.5%.
On average:
- the higher multiple names saw their multiples contract by 18% - 20%
- lower multiple comps saw their multiples compress by 33% - 35%
appealie.com/covid19-saas-i…
But worth including @BatteryVentures (@NeerajVC + @loganbartlett) on role of PE, a rising floor multiple(?), & diff risk-reward calculus(?).
The "Vista/Thoma Bravo put" *might* exist for 5x revenue names, not 14x revenue names.