201 days ago • Posted by Charles-Henry Monchau

The Software Sector is on fire. Here's the list of the richest Russell 3000 Software stocks - source: Bespoke

There was a time not long ago when companies that traded at more than 20 times earnings were considered expensive. For investors in the software sector, things are a bit different. With most companies in the sector having no earnings to speak of, the more preferable way to value a company is to look at its multiple to revenues. Still, even by that metric, a number of companies currently trade at more than 20 times revenues, if not much more. The table below lists companies in the Russell 3000 Software industry that trade for more than 20 times annual sales. Of these 27 names, eight trade for more than 40x sales, and two - BigCommerce (BIGC) and Zoom Video (ZM) - trade at more than 100x sales. And it's not as though these companies are small either. Of the 27 stocks listed, more than two-thirds have market caps of more than $10 billion, and their combined market cap is over $750 billion. Looking at the YTD performance, the average gain is 159.1%. The median is not as strong but is still an impressive 113.6% - source: Bespoke 

Russell 3000 software stocks Price to Sales, Market Cap and Year-to-date performance