Clouded Judgement: SaaS Valuation in the Face of Fed Rate Hikes and Inflation

The article analyzes how macroeconomic factors—particularly Fed interest rate expectations and inflation data—drive SaaS stock valuations and multiples. The author argues that recent CPI inflation data (7.5%) has already been priced into market expectations for rate hikes, and predicts the cloud software market may have reached or is near its valuation bottom for 2022. The piece includes detailed benchmarking data on 10 public SaaS companies' share price movements, valuation multiples, growth rates, and operational metrics.