Netsuite: $0 Equity Less Sweet

– To justify the current valuation, the company must grow revenues by 30%+ compounded annual through 2025, with ~15% EBIT margins on those sales

– While Netsuite has a significant foothold in the cloud based ERP market, its valuation multiples of 15x 2014 sales, 36x book value, and 109x P/CFO fail to reflect real competition

– Declining customer acquisition rates and future pricing headwinds will likely weigh on revenue growth

The full report can be found HERE