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Brian Ruder 5.0 1 idea

Co-CEO, Permira
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Software has been oversold, moving into an interesting price range. Public market valuations (e.g., Workday at 9x EBITA) present a benchmark that the private market has yet to reset to, which will happen in 6-9 months, creating opportunity. The dislocation between public and private software valuations sets up a potential entry point as prices converge. The sector is becoming attractive after a sell-off, but timing the catch-down of private markets requires patience and selectivity. A prolonged economic downturn could further compress software earnings and delay the valuation reset.
XLE Bloomberg Markets Apr 01, 17:06
Co-CEO, Permira
Brian Ruder (Co-CEO, Permira) | 1 trade ideas tracked | XLE | YouTube | Buzzberg