Technology stocks have historically traded at lofty valuations, yet the companies on our list today are taking that to an extreme. For comparison purposes, the average tech stock in the United States is trading at an EV/Revenue of 4.0x, an EV/EBIT of 17.5x, and a P/E of 22.7x.
Facebook Inc. (NASDAQ: FB) – $108.02
Internet Services
Facebook, Inc. is a social networking company engaged in developing products that enables users to connect and share through mobile devices and personal computers. It offers various services focused on people, marketers and developers. It also offers various platforms for people to share their opinions, ideas, photos and videos, and to engage in other activities. Its products include Facebook, Instagram, Messenger and WhatsApp.
- Market Cap: $308,279,631,718
- EV/Revenue (LTM): 18.4x
- EV/EBIT (LTM): 61.0x
- P/E (LTM): 109.0x
Adobe Systems Inc. (NASDAQ: ADBE) – $90.84
Software
Adobe Systems Incorporated (Adobe) is a software company that offers products and services for professionals, marketers, application developers, enterprises and consumers for creating, managing, delivering, optimizing and engaging with content. Adobe markets and licenses its products and services through app stores and its Website www.adobe.com. The Company’s operates in three segments: Digital Marketing, Digital Media, and Print and Publishing.
- Market Cap: $45,495,488,622
- EV/Revenue (LTM): 9.6x
- EV/EBIT (LTM): 59.3x
- P/E (LTM): 91.9x
Verisk Analytics Inc. (NASDAQ: VRSK) – $71.93
IT Services & Consulting
Verisk Analytics, Inc. is a provider of information about risk to professionals in insurance, healthcare, financial services, Government, supply chain and risk management. The Company provides predictive analytics and decision-support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, profitability optimization, data management, among others. The Company operates in two segments: Risk Assessment and Decision Analytics.
- Market Cap: $12,005,693,023
- EV/Revenue (LTM): 7.6x
- EV/EBIT (LTM): 20.9x
- P/E (LTM): 24.4x
Related: 6 U.S. Stocks Standing Out in a Shaky Q3 Earnings Season >>
Red Hat Inc. (NYSE: RHT) – $79.81
Software
Red Hat, Inc. is a provider of open source software solutions, using a community-powered approach to develop and offer operating system, virtualization, middleware, storage and cloud technologies. The Company employs an open source development model. The open source development model allows it to use the collective input, resources and knowledge of a global community of contributors who can collaborate to develop, maintain and enhance software because the human-readable source code for that software is publicly available and licenses permit modification.
- Market Cap: $14,891,156,981
- EV/Revenue (LTM): 7.6x
- EV/EBIT (LTM): 51.2x
- P/E (LTM): 76.3x
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Netflix Inc. (NASDAQ: NFLX) – $108.92
Internet Services
Netflix, Inc. is a provider of Internet television. The Company has over 57 million streaming members in more than 50 countries. Its members can watch more than two billion hours of television (TV) shows and movies per month, including original series, documentaries and feature films on Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD.
- Market Cap: $48,235,042,184
- EV/Revenue (LTM): 7.5x
- EV/EBIT (LTM): 154.4x
- P/E (LTM): 296.2x
Intuit Inc. (NASDAQ: INTU) – $98.05
Software
Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and Professional Tax. The Company operates in the United States, Canada, India, the United Kingdom, Singapore and Australia, among others. The Company’s Small Business segment solutions include QuickBooks Online, Online Payroll solutions, Online Payments solutions and Intuit Developer Group.
- Market Cap: $27,561,503,570
- EV/Revenue (LTM): 6.3x
- EV/EBIT (LTM): 35.7x
- P/E (LTM): 75.5x
