Clouded Judgement: Hyperscaler Cloud Growth & SaaS Valuation Multiples Analysis
This weekly cloud software analysis examines hyperscaler earnings expectations (AWS, Azure, Google Cloud) against a backdrop of rising 10Y Treasury yields at 5%, and provides comprehensive SaaS valuation multiple benchmarks across growth tiers. The article reveals that despite AI hype, enterprise cloud adoption may lag expectations, while SaaS median valuations cluster around 5.7x NTM revenue with significant differentiation by growth profile.
Metrics in this report
5.0percent
Current market environment as of October 20, 2023
2.5percent
average
2010-2020 period
12-13percent
median
Q2 2023 actual (12%) and Q3 2023 consensus expectations (12-13%)
27percent
median
Q2 2023 actual and Q3 2023 consensus expectations
35months
median
Gross margin-adjusted CAC payback for public SaaS
7percent
median
Public SaaS cohort
16percent
median
Public SaaS cohort
26-28percent
median
Q2 2023 actual (28%) and Q3 2023 consensus expectations (26%)
75percent
median
Public SaaS cohort
21percent
median
Public SaaS cohort
15percent
median
Public SaaS cohort
114percent
median
Public SaaS cohort
-17percent
median
Public SaaS cohort
27percent
median
Public SaaS cohort
42percent
median
Public SaaS cohort
11.8x NTM Revenue
median
Companies with >30% projected NTM growth
3.6x NTM Revenue
median
Companies with <15% projected NTM growth
5.7x NTM Revenue
median
Public SaaS cohort
8.2x NTM Revenue
median
Companies with 15-30% projected NTM growth
14.3x NTM Revenue
median
Top 5 highest-valued SaaS companies