Attractive Valuation and Integration Potential for C-WAN

about 1 month ago

Shomik Ghosh

"I do think like part of what's interesting right now is the fact that the valuation is, in my opinion, quite compelling where it currently is. ... you have a 90 to 98% gross retention business that was sticky ... and then you just put a shittier business on top, that you're now saying you're going to transform. That I think is actually the opportunity."

Shomik Ghosh discusses how Clearwater Analytics (rebranded as C-WAN) is trading at an attractive valuation based on ARR multiples and free cashflow yield. He explains that despite the challenges brought by their acquisition of lower-quality assets, the company has a highly sticky customer base. The integration of these acquisitions into a comprehensive, end-to-end platform could unlock significant risk-adjusted alpha, making it a compelling opportunity from a valuation and growth perspective.

Related Stocks