Clouded Judgement: The Return of Software
The article argues that despite AI disruption concerns, enterprise software will not disappear but must evolve by integrating AI capabilities. The author analyzes current SaaS valuation multiples, operating metrics, and benchmarks across public cloud software companies, revealing median EV/NTM revenue of 4.7x and significant valuation dispersion based on growth rates.
Metrics in this report
40months
median
Public SaaS companies
4.7multiple
median
All public SaaS companies
30.5multiple
median
High-growth SaaS (>25% NTM growth)
6.7multiple
median
Mid-growth SaaS (15%-25% NTM growth)
3.8multiple
median
Low-growth SaaS (<15% NTM growth)
18percent
median
Public SaaS companies
16percent
median
Public SaaS companies
76percent
median
Public SaaS companies
14percent
median
Public SaaS companies
11percent
median
Public SaaS companies
108percent
median
Public SaaS companies
-4percent
median
Public SaaS companies
24percent
median
Public SaaS companies
38percent
median
Public SaaS companies