IB Net Payout Yields Model

What Is Powering NetSuite so High?

Any investor reviewing the financials of NetSuite (NYSE: N  ) , the cloud-software based Enterprise Resource Planning (ERP) company, would probably derive a stock value below $30 rather quickly. Most investors would be shocked that the stock trades at nearly $110. The company is growing quickly as enterprises move toward cloud offerings, but NetSuite is only marginally profitable and revenue growth is slowing down to a more sustainable 25% long-term growth rate. Why then are investors willing to pay $8 billion for a stock only generating $400 million in revenue?

Read the full article here.

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