Public and Private SaaS Valuations November 2023

I regularly track SaaS valuations as a part of my consulting business. Tracking the valuations of public SaaS companies is easy, privately held SaaS companies are a bit more challenging, but not impossible. Year to date, the median public SaaS company valuation is up about 18.5%, while the overall Nasdaq is up 36.7%. In the past month, public SaaS company valuations have improved 9.4% versus 9.1% for the Nasdaq and 6.1% for the NYSE. Private company valuations have followed the same trends. The median EnterpriseValue/Revenue (ttm) multiple for public SaaS companies was 5.8x down from 16.4x in February 2021

In this article we will talk about

• Enterprise Value/Revenue (ttm) Multiples
• Trends in SaaS Valuations
• Valuations Vary by Software Category
• SaaS Valuations Vary By Company Size
• How Do You Determine the Value of a Private SaaS Company?

Enterprise Value/Revenue (ttm) Multiples

The most common way of describing the value of SaaS companies is the Enterprise Value/Revenue (ttm) Multiple. Generally speaking, Enterprise Value is equal to the value of a company’s equity (stock) minus the amount of cash/marketable securities plus debt. A simple way to look at EV is…