Valuation Analysis: Rule of X vs. Multiples
Summary
* Reports on Confluent, Rubrik's IPO, and Match Group are on the way.
* In this short report we share simple relative valuation analysis using the Rule of X.
In a previous post we mentioned we're replacing much of our Rule of 40 analysis with the Rule of X after digesting the work by Bessemer Ventures.
Based on their analysis, they found that company valuations have a stronger R^2 with revenue growth than they do with FCF margin. Bessemer, rightly so, attributes this to the notion t