Enterprise software was one of the hottest segments of the technology sector in 2021. Capital was cheap thanks to record-low interest rates, and software companies were spending it on marketing and product development to generate surging revenue growth, even if it meant they lost money at the bottom line.

But the era of cheap money is over, and most software companies now prioritize profitability. They are slashing costs, which affects their revenue growth, and that has forced investors to reassess their valuations.

Bill.com (NYSE: BILL) offers a portfolio of software products for small and midsize businesses (SMBs). Its stock price is down 85% from its all-time high, but here's why it looks like a bargain right now based on one widely used valuation metric.

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Source Fool.com