Clouded Judgement: March CPI Update & SaaS Valuation Multiple Analysis

Market expectations for Fed rate cuts have dramatically shifted from 8 cuts to 2 cuts following March CPI data showing inflation at 3.5% YoY, pushing the 10Y yield to 4.6%. Despite this macroeconomic headwind, SaaS software valuations have remained relatively resilient, with median NTM revenue multiples staying range-bound at 6.0x-6.4x, suggesting the market expects either near-term growth re-acceleration or inflation reversal.