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Digital Engineering Public Metrics Update

As an investment firm with a focus on technology services, Alten Capital monitors the progress of publicly traded digital engineering companies. Companies we track include EPAM (EPAM), Globant (GLOB), Endava (DAVA), Thoughtworks (TWKS), CI&T (CINT), Grid Dynamics (GDYN), and AgileThought (AGIL).

Endava was the last one reporting earnings this week. Below a valuation and operating metrics update.


Even though we look at private markets, it is useful to gain insights into key public players. A common theme we noticed during earning calls were comments around AI and machine learning given the quick advancements we have seen in generative AI and LLM technologies during the last months. The 2023 business slowdown is also clear when looking at this year’s growth goals and overall commentary.

In addition, we looked at valuation, growth and profitability metrics. The size of each bubble in the chart below represents the respective enterprise value of each company. We can see the market expects CI&T to grow the highest, with Globant second even relative to its scale, whereas Thoughtworks is expected to grow the least this year. Notably, Globant stands out as the most expensive company, while AgileThought emerges as the least. If we drew a regression line, we probably would see a slight correlation between higher growth rates and higher multiples.


Looking at profitability now, the market sees AgileThought with the lowest profitability, whereas Endava is expected to show the highest projected EBITDA margin for 2023. Notably, CI&T stands out as the least expensive from a profitability metric (and from a relative growth metric). Globant maintains the highest relative valuation in both revenue and EBITDA metrics. To note, higher scale companies have higher EBITDA multiples as seen in the chart below. We would also see an upward sloping regression line if we added it here.


Alten Capital actively engages in the technology services sector. We seek to establish connections with founders, management team members, and fellow investors in IT services. Please reach out to connect and explore how we can collaborate.