The global enterprise software market has reported significant growth in recent years and is expected to exceed $575 billion by 2024. Recent acquisitions of CA Technologies and Redhat increased the 2018 transaction values soaring beyond total 2017 deal values. Deal counts are at consistent levels proving there is a continual investor appetite for companies specializing in enterprise software.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants