Clouded Judgement: Rising Rates and SaaS Valuation Multiples

This article analyzes how rising interest rates and a strong labor market are creating headwinds for SaaS valuations despite soft landing prospects, with a detailed breakdown of revenue multiples, operating metrics, and Rule of 40 analysis across top 10 SaaS companies. The author argues that rate hike risks will outweigh soft landing tailwinds in the near term, particularly pressuring unprofitable growth companies without FCF support. The analysis includes comprehensive benchmarking data showing median SaaS multiples, gross margins, and CAC payback periods across the industry.