Clouded Judgement

This article provides a comprehensive snapshot of SaaS valuation multiples, operating metrics, and share price movements as of July 2021, showing cloud software companies trading at 52% above COVID highs and 84% above Jan 1, 2020 levels. The analysis benchmarks top 10 SaaS companies across EV/NTM revenue multiples, growth rates, margins, and operational metrics, revealing a median 16.5x multiple for the broader SaaS market but 28.0x for high-growth companies. The article demonstrates how growth correlates with valuation multiples and introduces growth-adjusted valuation analysis to assess relative pricing efficiency.