Judeokelly.com Website Review

With the US market becoming an attractive destination for Chinese tech IPOs I have chosen to compare three US tech companies with their closest China counterparts. The primary two valuations metrics I will focus on however this as*umes the company is financed primarily through equity, market capitalization based valuations can become very misleading for companies with significant amounts of debt financing or that have large cash balances. Enterprise value gives a much more complete picture of a companies’ valuation as it accounts for both debt and cash balances. which have yet to achieve profitability or companies (such as Amazon) that are run at break-even will not have significant Net Income and as Amazon’s closest Chinese counterpart is Alibaba.It should however be noted that there are a few major differences with the businesses: ma*ure business than Alibaba Cloud at of 10x the revenue and is generating $2.5B of operating income whereas Alibaba Cloud is still Ant’s primary shareholder is Jack Ma and Alibaba has a complex  arrangement whereby it is entitled to a third of any IPO proceeds and Nevertheless, they are both are the dominant eCommerce players in their respective markets. which can fully justify the mas*ive difference between the two valuations. The average eCommerce company is valued at under 3x revenue, and the closest valuation in my dataset of 150 tech companies is that of Atlas*ian which trades at 16x revenues. Atlas*ian is considered a best of breed Saas which are always valued at a premium to eCommerce companies due to their revenue quality (Atlas*ian It is heard to find any tech company with a valuation comparable to that of Alibaba, and this is in spite of its opaque ownership and Whilst Google’s EV of $625 billion dwarfs Baidu’s $70 billion valuation they operate similar businesses, albeit of different scale, as both derive the majority of their revenue from search based advertising. Google’s business looks by far the more healthy – both have similar net margins at approximately 25%, Google has a marginally