Global SaaS Valuation By Sector
Global SaaS Valuations 2016-2024
25x
20x
SaaS valuations have stabilized following market anomalies caused by the COVID-19 pandemic. This stability shows positive outlooks for 2024 as, on average, as SaaS revenue multiples pick up from previous lows. The market could reflect even better returns with both lowered interest rates and a continued surge in AI investments — particularly in the lower and middle markets. Still, some fluctuations could come through the next year as data regulations expand and AI standards take shape. Plus, global election cycles present unknowns that could affect the market in later quarters. That said, investors are curious and looking for unique enterprises that are made to scale. AI and cybersecurity technologies will see continued investor interest across markets. Proprietary software and exclusive technologies still drive general investor interest, but valuations vary. Sellers will be expected to show strong company earnings across the board — like ARR, YoY growth, and gross margins that indicate the ability to sustainably scale operations — rather than just cash profit.
15x
10x
5x
0x
Human Resources and Workforce Management Collaboration and Productivity
Enterprise Resource Planning, Financial and Business Management Customer Relationship Management, Digital Commerce, and Sales
Source: Pitchbook as of June 2024. Data consists of transactions where deal value was disclosed. Note: Mean and Median is EV/NTM EBITDA
17
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