TABLEAU

HBR Case 2 Discussion

Learning Objectives
• How to value growth companies when traditional valuation
methodologies cannot be implemented.

• A Technology company cannot be evaluated on the basis of ROI in

physical capital. WHY ?

• Total Addressable Market (TAM)

Key concepts (1)
• Subject fit for this CASE – ???Investment strategies (VC)
• Mainframe (Huge CPU, Larger Organization) to Client server (Mid and
Smaller firms, EXE) to Distributed Computing (SME, SaaS)?
• Why Wall Street underestimate the size of the markets 23$ ?
• 31$, 28$-30$, 44$, 50.75$ ?, 100$,
• Unique feature of Tableau ? (Insights at the speed of thought )
• Methodology 1, 2, 3 (Is it TAM?)
Key concepts (2)
• What is EBIT margin?
• Earnings before interest and taxes - The operating earnings over operating sales. This margin
allows investors to understand true business costs of running a company, because parts of a
company's property, plant, and equipment will eventually need to be replaced as they get
used, broken down, decayed, etc.
• EXHIBIT 5
• EXHIBIT 7
Key Questions (1)
• Mr. Balbale maintain/increase/sell Matrix’s position in Tableau?
• NAV – Net Asset Value ?
• EPV – Earning Power Value ?
• Value proposition of Tableau?
• Competitors of Tableau?
• Qlik ?
• VMWARE, RUSSELL, FIRMS (Method 1, 2, 3)
Key Questions (2)
• Common valuation tool

• Revenue multiple = market capitalization/ revenue

• Before/ After announcement ?

• P/E ratio
• 81.70$ to 40$ (2015Q4)
• 57% to 31% Q3