Clouded Judgement: November 2023 Macro Update & SaaS Valuation Multiples Analysis
This weekly cloud software market update analyzes November 2023 inflation data, FOMC commentary, and Fed rate projections showing a strengthening soft-landing narrative, then provides comprehensive SaaS valuation multiple analysis across growth cohorts with median benchmarks for operating metrics including 75% gross margin, 112% NRR, and 39-month CAC payback. The article demonstrates that SaaS companies are increasingly valued rationally relative to growth expectations, with a median EV/NTM revenue multiple of 6.3x and clear correlation between growth rate and valuation premium.
Metrics in this report
3.9percent
Week of December 2023; lowest since summer
39months
median
SaaS companies at scale
3.1percent
November 2023
3.2percent
November 2023
6.3multiple
median
Broad SaaS cohort
16.9multiple
median
Top 5 SaaS companies
15.8multiple
median
High-growth SaaS (>30% NTM growth)
9.3multiple
median
Mid-growth SaaS (15-30% NTM growth)
4.1multiple
median
Low-growth SaaS (<15% NTM growth)
8percent
median
SaaS companies at scale
2.4percent
target
2024 Fed projection
17percent
median
SaaS companies at scale
75percent
median
SaaS companies at scale
20percent
median
SaaS companies at scale
14percent
median
SaaS companies at scale
112percent
median
SaaS companies at scale
-13percent
median
SaaS companies at scale
26percent
median
SaaS companies at scale
43percent
median
SaaS companies at scale