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.
For this analysis, we looked at the following companies:
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
Average Gross Profit
Number of Profitable Companies
Average Market Cap/Revenue
Average Market Cap/Gross Profit