Valuation Watch: 5 Pricey Software Stocks by TechStockProspector

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									Robert DeFrancesco’s
TechStockProspector.com
October 15, 2012


Valuation Watch: 5 Pricey Software Stocks
NOW AVAILABLE: The October 2012 issue of Tech-Stock Prospector for your
Amazon Kindle or Kindle for iPad/iPhone reading app.

Here are some of the topics covered in the October 2012 issue:

*Apple stumbles after the iPhone 5 launch
*Google shares hit a new all-time high
*Short sellers circle Splunk
*Adobe Systems embraces the cloud
*The new darling of networking security: Palo Alto Networks
*Demandware benefiting from growth in e-commerce
*NetSuite expands via its SuiteCommerce platform
*Cisco Systems gets some Wall Street support
*F5 Networks jockeys for more share of the ADC market
*Cornerstone OnDemand fends off the big HCM competitors
*Tibco Software boasts a record deal pipeline
*Oracle steps up its cloud battle against Salesforce.com
*New cloud play: Eloqua automates lead management
*Are ValueClick shares undervalued?
*A fresh valuation analysis on Yahoo
*Deal Report: Cloud security IPO Qualys

Order the October 2012 issue here: http://www.amzn.com/B004T6Z0ME

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Of the 18 next-generation software companies that I cover (mainly cloud names),
these are the five most expensive stocks based on their forward price-to-sales (P/S)
ratios:

1-Workday (WDAY)
2-ServiceNow (NOW)
3-Splunk (SPLK)
4-NetSuite (N)
5-Cornerstone OnDemand (CSOD)
I also screen for revenue growth expectations relative to P/S ratios. For example,
Ultimate Software’s forward P/S ratio isn’t among the very highest in the group, but
the stock looks relatively expensive compared to its peers when its revenue growth
profile is included.

Here are the five highest P/S valuations adjusted for expected revenue growth:

1-NetSuite (N)
2-Demandware (DWRE)
3-Ultimate Software (ULTI)
4-Splunk (SPLK)
5-Workday (WDAY)

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Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

Here’s the Kindle link: http://www.amzn.com/B004T6Z0ME

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Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.

TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

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