Tag: PVC SaaS Index

Practical Summary: *** This post is an update in a quarterly series of posts that tracks the PVC SaaS Index™, a basket of publicly traded US-listed SaaS companies. Software as a Service (“SaaS”) has been around longer than the cool new cloud. The SaaS category shares some aspects of cloud computing, but its focus tends

Practical Summary: This post is an update in a quarterly series of posts that tracks the PVC SaaS Index™, a basket of publicly traded US-listed SaaS companies. Software as a Service (“SaaS”) has been around longer than the cool new cloud. The SaaS category shares some aspects of cloud computing, but its focus tends to be clearer:

Our PVC SaaS Index™ now trades at 7.4x EV / LTM revenue, up significantly from the 6.1x multiple that closed out Q4 2022. Median multiples are still below their 5- and 10-year averages. The S&P 500 has moved into what we call the “PVC Danger Zone.” It looks expensive, yet tech multiples are on a relative basis more attractive than at any time since 2010.