Another solid earnings report from Snowflake (NYSE: SNOW) at the end of August is long forgotten. Shares of the data-cloud company are off about 25% since second-quarter earnings were announced -- and down a whopping 55% so far in 2022. 

And yet, even after falling so far, Snowflake still trades for 162 times trailing 12-month free cash flow. The company expects to grow product sales by at least 67% this year, so you could still argue the premium price is worth it. But is this stock "cheap" yet given its long-term potential? Let's see.

After Snowflake's initial public offering (IPO) in September 2020, I was happy to have just a little exposure to the stock via IPO participants Salesforce (NYSE: CRM) and Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Each company scooped up $250 million worth of Snowflake stock. Salesforce offloaded most of its stake in 2021, and then sold what remained in early 2022. Buffett and company are still holding -- remarkably still at an unrealized profit thanks to the IPO price of $120 per share on Snowflake. Salesforce cleaned up nicely by selling early and locking in a profit.

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Source Fool.com