Growth weighted 2–3x more than FCF margin for late-stage cloud companies
For late-stage cloud companies, revenue growth should be weighted 2–3 times more than free cash flow (FCF) margin when assessing valuation.
Supporting evidence
The Rule of X
Original excerpt
Growth is more valuable than profitability: For late-stage cloud companies, revenue growth should be weighted 2-3x more than FCF margin when assessing valuation.