PRIVATE CLOUD MULTIPLES ARE TRADING AT A PREMIUM TO PUBLIC CLOUD MULTIPLES… BUT IT CANT LAST The public / private gap will converge Public cloud multiples are cheap Source: 45 companies in BVP Cloud Index as of 2/4/2016. CapIQ. Note: Private cloud transactions based on 69 private transactions. In the last 6 months, the average ARR multiple paid was 14.0x. BVP Cloud Index multiple and Legacy software multiples are both NTM GAAP revenue. 28