Valuing SaaS Companies

Looking at the largest publicly-traded SaaS companies.

We recently conducted an extensive valuation analysis of 20 of the largest publicly-traded SaaS companies. While the multiples of revenue and gross profit of these companies are higher than those of small-cap public SaaS companies, we believe that these are good comparables for companies seeking capital or M&A in the public market.

The Companies

For this analysis, we looked at the following companies:

Salesforce
Workday
ServiceNow
Shopify
Splunk
Veeva
Atlassian Corporation
LogMeIn
The Ultimate Software Group
Athenahealth

Tableau Software
Guidewire Software
Medidata Solutions
Proofpoint
RealPage
Wix
RingCentral
Twilio
Box
Ellie Mae

Metrics

We looked at Revenue, Gross Profit, EBITDA-level Profitability, and Market Cap. The multiples that we found most helpful were Market Cap to Revenue and Market Cap to Gross Profit. Unfortunately, Market Cap to EBITDA ranged from 12x to 789x so it was really not a helpful metric.

Average Market Cap

$14.21B

Average Revenue

$1.512B

Average Gross Profit

$957.18M

Nasdaq Companies

10

NYSE Companies

10

Number of Profitable Companies

11

Average Market Cap/Revenue

9.36X

Average Market Cap/Gross Profit

15.7X

Let us help you figure out the best solution to fit your SaaS company.

We are experts at the design and execution of creative financial, acquisition, and other corporate transaction structures. We work with companies to determine the best financing structure to fit their needs, help prepare the company and its materials for financial partners, match them with the most appropriate financial partners, and work as their advisor throughout the entire process.