2021 SaaS Valuation Update

By Marco Joosten

In our SaaS Valuation Update over 2021, we identified and tracked nearly 100 of the most influencing SaaS companies around the world.

We kept track of the performance and valuations of these companies, and we have displayed our findings across eight graphs. These graphs benchmark the underlying companies and the SaaS Index against its relevant peers.

We found some striking conclusions on the significant variance among stock and company performances, growth drivers, and changes in company valuation over the year.

Whereas other research generally comprises a smaller subset of (listed) SaaS companies and a narrower focus on common metrics such as growth and gross margins, we have included typical SaaS metrics such as Net Retention Rate and Rule of 40 in our analysis.

Some insights that we found:

  • Since March 2021, the NASDAQ and S&P 500 have outperformed the SaaS Index with 9.1% and 11% respectively.

  • The highest valued SaaS companies have excelled in stock performance compared to the general SaaS Index.

  • Growth became the most relevant driver of valuation multiples for SaaS companies.