More Charts Show That Anyone Who Thinks We're In A Tech Bubble Is Crazy

New York investment bank Peachtree Capital Advisors just published their mid-year tech M&A review, and it’s interesting to see what’s going on with regard to the tech bubble we’re supposedly in. 

Two charts in particular caught our attention.

The first is valuations in the technology sector. Note this includes IT services firm etc., not just internet–but still, tech.

technology sector valuations

Photo: Peachtree Capital Advisors


EBITDA multiples slightly over 15. Revenue multiples that don’t break 5. Crazytown!

For the record, back in 1999, Cisco was valued at 30X revenue.

The second chart concerns internet acquisitions in the past semester:

internet valuations and acquisition multiples

Photo: Peachtree Capital Advisors

Again, doesn’t seem very bubblicious.

The average multiple is a very reasonable (low, even, for internet) 4.3X revenue.

Only one company even approaches a 10X valuation, and Peachtree’s report says the acquirer paid a premium because the company it was buying was disrupting it. 

It’s mind boggling how people can say we’re in a bubble with these kinds of numbers.

Sure, some tech valuations are high, and maybe too high. But by definition a bubble affects every asset in a category, not just a few. Otherwise, it’s not a bubble.

Don’t Miss: Why Twitter Is Worth More Than $7 Billion →

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at