Clouded Judgement: M&A Roars Back

M&A activity in cloud software surged in Q1 2025 with major deals including Wiz ($32B), signaling a potential shift from organic to inorganic expansion strategies. The article provides detailed SaaS valuation multiples and operating metrics, showing a median 5.5x EV/NTM revenue multiple across the sector with significant variation by growth profile. Key findings indicate high-growth companies trade at 15.2x multiples while low-growth peers trade at 4.0x, reflecting strong correlation between revenue growth and valuation.