Recent markdowns of Airbnb and Palantir by Morgan Stanley funds have resulted in what may be the most extreme disparities yet between mutual fund valuations of private tech companies. They appear to reflect wide variations in revenue multiples used to calculate valuations, filings show. The gaps highlight a continuing debate among companies, venture capitalists and mutual funds about the significance of mutual fund valuations.
Recent filings show that Morgan Stanley Investment Management is now valuing Airbnb a stunning 39% below Fidelity—$73.41 per share for Morgan Stanley to $119.62 for Fidelity. In other words, Morgan Stanley’s price implies that it thinks Airbnb is worth $20.1 billion while Fidelity’s puts it at $32.8 billion.