Clouded Judgement: SaaS Valuation Multiples & Market Risk-Off Dynamics

During a severe market downturn driven by macro uncertainty (inflation, geopolitical risk, rate hikes), cloud software stocks have corrected to historical valuation multiples despite strong underlying business performance. The author argues that meaningful upside catalysts are unlikely for 3-4 months, and expects sideways trading or further multiple compression for high-multiple companies as growth deceleration becomes evident through Q1 earnings.