A financial metric representing the ratio of a company’s stock price or market capitalization to a fundamental value such as earnings or revenue, used to assess relative worth.
Overview
- [Industry analysis] Brad Gerstner of Altimeter Capital argues that AI disruption lowers the predictability of future cash flows for software companies, compressing valuation multiples from 30-35x to a single-decade horizon. (Source: Brad Gerstner, via AI Daily Brief, 2026-08-24)