SaaS Valuation Floor: Analyzing the Rebound Opportunity in 2016

Dave Kellogg analyzes SaaS stock valuations using forward twelve-month (FTM) enterprise value to revenue multiples, arguing that current trading levels of 3.2x represent a 35% discount to historical averages and a potential buying opportunity if revenue forecasts remain stable. The article examines the psychological battle between fear-driven further declines and greed-driven recovery, suggesting that high-quality public SaaS companies are trading at historically low multiples despite risk of additional correction.