PitchBook report questions Databricks' $190 billion valuation as excessive, stating its operational value is closer to $68.7 billion.
A new report from PitchBook states that while Databricks has become one of the most powerful private software companies globally, its $190 billion valuation is excessive. Harrison Rolfes, the report's author, believes Databricks is a high-quality business but not an attractive investment at its current price. Databricks completed a $5 billion funding round in August at a $190 billion valuation, a 41.8% increase from its $134 billion valuation in February. The PitchBook report estimates Databricks' operating value is closer to $68.7 billion, a 64% discount to its valuation. The report reached this conclusion by forecasting Databricks' revenue and cash flow over the next 10 years and discounting them to their present value.
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