cloudedjudgement.substack.com · 2021-10-01 · 1707d

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.

14 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

CAC Payback Period

25months

median

SaaS market broad benchmark

EV/NTM Revenue Multiple

14.7x

median

Broad SaaS market, October 2021

EV/NTM Revenue Multiple

51.0x

median

Top 5 SaaS companies by valuation

EV/NTM Revenue Multiple

31.0x

median

High-growth SaaS (>30% NTM growth)

EV/NTM Revenue Multiple

14.1x

median

Mid-growth SaaS (15-30% NTM growth)

EV/NTM Revenue Multiple

5.4x

median

Low-growth SaaS (<15% NTM growth)

Free Cash Flow Margin

6percent

median

SaaS market broad benchmark

G&A % of Revenue

19percent

median

SaaS market broad benchmark

Gross Margin

74percent

median

SaaS market broad benchmark

NTM Revenue Growth

23percent

median

SaaS market broad benchmark

Net Revenue Retention

120percent

median

SaaS market broad benchmark

Operating Margin

-16percent

median

SaaS market broad benchmark

R&D % of Revenue

26percent

median

SaaS market broad benchmark

Sales & Marketing % of Revenue

43percent

median

SaaS market broad benchmark