Clouded Judgement

This article provides a comprehensive analysis of public SaaS company valuations as of September 2021, showing that the top 10 highest-valued companies trade at a median 49.1x NTM revenue despite significant operating losses. The author benchmarks valuation multiples against growth rates, profitability metrics, and cash flow generation across the SaaS sector, revealing a disconnect between valuation multiples and fundamental profitability metrics.