Looking at buying and doing some research, I noticed Altium's market share is 24% (up ~1% a year since FY19), at this current rate, would Altium really grow it's revenue by a lot to justify its 94x price earnings ratio? What happens if the other big ~4 and other players manage to take market share over the next few years, seems like the market is quite fragmented and a bit of risk to growth / customer churn. Not to mention the customer acquisition costs to compete with the other players and discounts being provided leading to less profitability and an even richer valuation.
The other thing I've noticed is investment banks not valuing ALU nicely with the upgraded guidance after Autodesk withdrew their takeover offer. Is it just a matter of the market seeing much more potential?
Keen to buy but not sure if now is the right time given these risks and valuation
Add to My Watchlist
What is My Watchlist?