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A comment on Canva Raises at $40B – Its Founders Are Pledging Away Most of Their Wealth. Parent comment

Re:Canva Raises at $40B – Its Founders Are Pledging Away Mos... by MR4D on Tuesday September 14, 2021 @08:09PM (#28533327)
That’s a 40 times revenue. The normal metric is a multiple of profits.

There is no way this isn’t overvalued. Even reasonably fast growth of a 40x multiplier would need roughly 1 billion in profits. And yes, I say that as a fan of the tool.

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Re:Canva Raises at $40B – Its Founders Are Pledging Away Mos... by run-types on Tuesday September 14, 2021 @09:08PM (#28533859)
The article didn't say how profitable they are. If they're brining in $1B of revenue per year, and have a profit margin of 30%, then that's 300M in profit, yielding a P/E ratio of 133. If they're growing at over 100% YoY (which seems insane at this scale), then they're down to a very reasonable P/E ration of 33 after 2 years.
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