SaaS Valuation Floor Analysis: Assessing Remaining Downside Risk in 2016

Dave Kellogg analyzes SaaS stock valuations in February 2016, comparing forward revenue multiples that have declined from 7.7x to 3.3x since January 2014. He establishes a valuation framework suggesting SaaS stocks have 30% downside potential to reach a floor of 2.0x revenues, while presenting the contrasting opportunity for 50%+ upside returns if sentiment shifts toward greed.