      cloudedjudgement.substack.com · 2025-07-11
      · 328d
    

Clouded Judgement: SaaS Valuation Multiples & Market Outlook (July 2025)

A market analysis newsletter covering macro trends affecting cloud software valuations, featuring detailed comparable company analysis of top 10 SaaS multiples and their relationship to growth rates, margins, and profitability metrics. The author argues that current market positioning remains constructive despite inflation concerns, supported by strong earnings season prospects and structural AI tailwinds.

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Metrics in this report

CAC Payback Period

72months

median

Public SaaS companies

EV / NTM Revenue Multiple

5.3multiple

median

All public SaaS companies in peer set

EV / NTM Revenue Multiple

23.4multiple

median

Top 5 highest-valued SaaS companies

EV / NTM Revenue Multiple

20.6multiple

median

High-growth SaaS (>25% NTM growth)

EV / NTM Revenue Multiple

8.8multiple

median

Mid-growth SaaS (15-25% NTM growth)

EV / NTM Revenue Multiple

4.1multiple

median

Low-growth SaaS (<15% NTM growth)

Free Cash Flow Margin

18percent

median

Public SaaS companies

G&A Spend % of Revenue

16percent

median

Public SaaS companies

Gross Margin

76percent

median

Public SaaS companies

LTM Revenue Growth Rate

14percent

median

Public SaaS companies

NTM Revenue Growth Rate

11percent

median

Public SaaS companies

Net Dollar Retention

108percent

median

Public SaaS companies

Operating Margin

-4percent

median

Public SaaS companies

R&D Spend % of Revenue

24percent

median

Public SaaS companies

S&M Spend % of Revenue

38percent

median

Public SaaS companies