Clouded Judgement: SaaS Valuation Multiples & Growth Correlation Analysis

This weekly SaaS analysis examines valuation multiples across top cloud software companies, revealing a median EV/NTM revenue multiple of 16.3x with significant variation by growth rate (high-growth at 32.2x vs. low-growth at 5.4x). The article benchmarks operating metrics including NRR (119% median), CAC payback (25 months), and Rule of 40 performance, highlighting the disconnect between valuation multiples and fundamental profitability metrics across the sector.