Clouded Judgement: Interest Rate Impact on Cloud Software Valuation & SaaS Benchmarks
The article explains how rising interest rates affect cloud software stock valuations through capital flow dynamics, as large institutional investors reallocate from risk assets to safer bonds. It provides detailed SaaS valuation multiples, operating metrics benchmarks, and Rule of 40 analysis for the top cloud software companies as of October 2021.
Metrics in this report
25months
median
SaaS market broad benchmark
14.7x
median
Broad SaaS market, October 2021
51.0x
median
Top 5 SaaS companies by valuation
31.0x
median
High-growth SaaS (>30% NTM growth)
14.1x
median
Mid-growth SaaS (15-30% NTM growth)
5.4x
median
Low-growth SaaS (<15% NTM growth)
6percent
median
SaaS market broad benchmark
19percent
median
SaaS market broad benchmark
74percent
median
SaaS market broad benchmark
23percent
median
SaaS market broad benchmark
120percent
median
SaaS market broad benchmark
-16percent
median
SaaS market broad benchmark
26percent
median
SaaS market broad benchmark
43percent
median
SaaS market broad benchmark