TSLA
Tesla
-- 410.440 NVDA
NVIDIA
-- 144.470 CRNC
Cerence
-- 19.330 MSTR
MicroStrategy
-- 339.660 RGTI
Rigetti Computing
-- 19.0200 PSG (PS Growth Ratio) ratio is one of the important indicators for evaluating high-growth companies, especially suitable for the Software as a Service (Saas) industry.
Definition of PSG ratio
PSG ratio = Enterprise Value (EV) / Sales Revenue / Expected Annual Revenue Growth Rate
• Enterprise Value (EV) / Sales Revenue: the traditional PS ratio, measuring the market's valuation of the company's sales.
• Revenue Growth Rate: combined with growth potential, making the PSG ratio more targeted.
PSG ratio is mainly used to determine if the company's valuation is reasonable, especially in industries with significant growth rate differences.
Application of PSG ratio in the software industry
SaaS companies are usually valued higher due to their business model having high scalability and rapid growth potential.
The PSG ratio complements the shortcomings of the traditional P/S ratio, helping investors determine whether the valuation with a high PS ratio reasonably reflects growth expectations.
3. Chart Analysis
Classifying software companies based on the PSG ratio:
• Undervalued companies (PSG 0.7):
Including #IOT, #MSFT, #ADBE, #ZM, #PLTR, etc.
Analysis: Although they show strong growth potential, the valuations are high, it is recommended to wait for a better buying opportunity.
Investment Advice
Companies currently being monitored: #AMZN, #BILL, #SNOW, #GOOG, #PLTR, #ADBE, #MSFT.
My choice is to regularly invest in these companies through scheduled purchases.
PSG ratio = Enterprise Value (EV) / Sales Revenue / Expected Annual Revenue Growth Rate
• Enterprise Value (EV) / Sales Revenue: the traditional PS ratio, measuring the market's valuation of the company's sales.
• Revenue Growth Rate: combined with growth potential, making the PSG ratio more targeted.
PSG ratio is mainly used to determine if the company's valuation is reasonable, especially in industries with significant growth rate differences.
Application of PSG ratio in the software industry
SaaS companies are usually valued higher due to their business model having high scalability and rapid growth potential.
The PSG ratio complements the shortcomings of the traditional P/S ratio, helping investors determine whether the valuation with a high PS ratio reasonably reflects growth expectations.
3. Chart Analysis
Classifying software companies based on the PSG ratio:
• Undervalued companies (PSG 0.7):
Including #IOT, #MSFT, #ADBE, #ZM, #PLTR, etc.
Analysis: Although they show strong growth potential, the valuations are high, it is recommended to wait for a better buying opportunity.
Investment Advice
Companies currently being monitored: #AMZN, #BILL, #SNOW, #GOOG, #PLTR, #ADBE, #MSFT.
My choice is to regularly invest in these companies through scheduled purchases.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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