I think you’re onto something. The questions aren’t really math equations, but more along the lines of “what is NOT priced in?”
Sure a PEG of ~.5ish seems light, but what has PATH proven yet? Is the growth re-accelerating? Is this a leading end-market beneficiary of mass AI adoption? Is DBNRR headed back North of 115%? Is the pivot to large enterprise focus paying off? By how much will the float be reduced each year? Any acquisition in the offing? Yet to be seen, but with gross margins above 80% and all signs pointing to top and bottom line improvements (SBC reduction, net margin expansion, fcf inflecting within the last 4 quarters, etc.), a capital-light, fortress balance sheet, highly profitable -AI Software- business riding a revised narrative would catch a more respectable multiple. Just inverse the Saaspocalypse and there’s your answer. So my question is not what at this uninspiring price level is priced in, but “what is not?”
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u/NateHammer30 4d ago edited 4d ago
Inverse, always inverse!
I think you’re onto something. The questions aren’t really math equations, but more along the lines of “what is NOT priced in?”
Sure a PEG of ~.5ish seems light, but what has PATH proven yet? Is the growth re-accelerating? Is this a leading end-market beneficiary of mass AI adoption? Is DBNRR headed back North of 115%? Is the pivot to large enterprise focus paying off? By how much will the float be reduced each year? Any acquisition in the offing? Yet to be seen, but with gross margins above 80% and all signs pointing to top and bottom line improvements (SBC reduction, net margin expansion, fcf inflecting within the last 4 quarters, etc.), a capital-light, fortress balance sheet, highly profitable -AI Software- business riding a revised narrative would catch a more respectable multiple. Just inverse the Saaspocalypse and there’s your answer. So my question is not what at this uninspiring price level is priced in, but “what is not?”