Every week I’ll provide updates on the latest trends in SaaS valuations, earnings announcements, and highlight any noteworthy news. Follow along to stay up to date! Another week, more all-time high SaaS valuations. The median SaaS forward revenue multiple is now ~14x. It wasn’t that long ago that a multiple that high was reserved for the high growth SaaS businesses. It may seem crazy, but only this year Zoom and Datadog traded at 16x, Coupa and Okta traded at 15x, Bill.com traded at 10x, and Crowdstrike traded a <10x! The multiple expansion we’ve seen this year has been astronomical. If you look at the 3 month trailing average multiple it’s widening its gap from the 1 year trailing average multiple which highlights just how fast multiples are expanding recently.
Great synopsis. Crazy multiples we’re seeing!