Couldn't agree more...currently trading at 4.5x revenues, which is still well above their comp group median of 3.0x...looking out to 2013E revenues, it's still trading at 4.0x, which is above the median of 2.9x.
The only companies trading higher are LinkedIn and Yelp, which have much more compelling stories and are EBITDA POSITIVE. Angie's list isn't expected to be EBITDA postive until late 2014 at 3.2%. For comparison purposes, relative 2014E EBITDA margins for LNKD and YELP are expected to be 25% and 15%, respectively.
Should come down again ~30% to high $7's to be more appropriately valued considering growth / profitability.
As you pointed out, cash requirements are another headwind and will force another follow-on equity offering (dilution) or debt raise (profitability hit). Either way, it's not good.