When we launched our professional-grade global stock screener into free beta, we created a simple screen to identify attractively valued technology companies that we could compare to other well known tech companies.
Specifically, we were looking for companies that met the following criteria:
Field |
Operator |
Condition |
Reasoning |
Sector |
= |
“Technology” |
Limit scope to tech sector |
Market Capitalization |
> |
$10,000,000 |
Remove micro-cap companies |
Total Revenue(A) / Employees |
> |
$500,000 |
Remove low-margin services and manufacturing companies |
Net Income(I) |
> |
$0 |
Limit to profitable companies |
Current EV/EBITDA |
< |
10 |
Remove companies trading at high multiples |
Total Debt(I) |
< |
EBITDA(A) |
Very conservative debt threshold |
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