Since the previous quarter, the Q3 2021 E-Spring B2B SaaS Index remained at a record high valuation with 14X EV/Sales versus 13,7X EV/Sales in Q2 2021.
The third quarter of 2021 looks to be a continuation of Q2. The market is showing support for these range of valuations. Such trend could be a sign that the market has reached a peak level and is no longer anticipating higher growth in the short-term.
If we look at the pre-pandemic era, the valuation of the SaaS market is still almost double that of early 2020. The crisis has been an accelerator of digital transformation for many organisations. SaaS solutions have proven to be a reliable and convenient option for more remote working.
| Name | Country | Market Cap (EUR) | EV/SALES 2021 | EV/EBITDA 2021 | P/E 2021 | Sales CAGR (2018 – 2020) |
| Adobe Inc. | US | 237 Bln | 17,4x | 34,1x | 45,9x | 19,40% |
| Alteryx, Inc. | US | 4,15 Bln | 8,7x | – | – | 39,80% |
| Anaplan, Inc. | US | 7,65 Bln | 19,3x | – | – | 43,80% |
| AppFolio, Inc. | US | 3,59 Bln | 11,5x | 97,5x | – | 27,70% |
| Atlassian Corporation Plc | AU | 84 Bln | – | – | – | 35,40% |
| ATOSS Software AG | DE | 1,43 Bln | 14,6x | 47,2x | 81,4x | 17,20% |
| ATTRAQT Group plc | UK | 89,2 Mio | 3,1x | 80,1x | – | 10,70% |
| Avalara, Inc. | US | 13 Bln | 21,8x | – | – | 35,60% |
| Avast Plc | CZ | 6,8 Bln | 9,0x | 16,4x | 20,3x | 5,10% |
| AVEVA Group plc | UK | 12,5 Bln | 13,8x | 72,9x | – | 30,90% |
| BlackLine, Inc. | US | 5,93 Bln | 16,1x | – | – | 24,30% |
| Blue Prism Group plc | UK | 1,29 Bln | 5,8x | – | – | 60,00% |
| Datadog, Inc. | US | 36,9 Bln | – | – | – | 74,50% |
| DocuSign, Inc. | US | 43,5 Bln | 34,8x | – | – | 37,10% |
| Dynatrace, Inc. | US | 17,2 Bln | 28,5x | – | – | 17,10% |
| Elastic N.V. | US | 11,7 Bln | 21,7x | – | – | 63,50% |
| Everbridge, Inc. | US | 5,08 Bln | 16,2x | – | – | 35,80% |
| HubSpot, Inc. | UK | 27,6 Bln | 24,8x | – | – | 31,20% |
| Medallia, Inc. | US | 4,7 Bln | 11,1x | – | – | 24,10% |
| Mimecast Limited | UK | 3,63 Bln | 8,3x | 56,9x | 141,7x | 27,70% |
| Nemetschek SE | DE | 10,5 Bln | 15,7x | 49,4x | 81,8x | 13,60% |
| New Relic, Inc. | US | 3,95 Bln | 6,4x | – | – | 29,90% |
| PagerDuty, Inc. | US | 3,11 Bln | 15,5x | – | – | 44,50% |
| Paycom Software, Inc. | US | 24,7 Bln | 27,5x | 69,5x | 111,5x | 21,90% |
| RIB Software SE | DE | 2,26 Bln | 7,1x | 29,3x | – | 36,40% |
| salesforce.com, inc. | US | 228 Bln | 12,0x | 81,8x | 65,0x | 27,40% |
| ServiceNow, Inc. | US | 105 Bln | 20,6x | 63,6x | 104,7x | 31,60% |
| Sidetrade SA | FR | 228 Mio | 6,4x | 46,2x | 71,3x | 10,00% |
| Smartsheet Inc. | US | 7,58 Bln | 21,9x | – | – | 56,00% |
| Splunk Inc. | US | 19,1 Bln | 10,3x | – | – | 34,20% |
| Talend S.A. | FR | 1,87 Bln | – | – | – | 18,20% |
| TeamViewer AG | DE | 5,11 Bln | 10,5x | 19,9x | 29,1x | 32,80% |
| Unity Software Inc. | US | 30,6 Bln | 32,1x | – | – | 42,40% |
| Veeva Systems Inc. | US | 37,4 Bln | 28,5x | – | 114,2x | 26,40% |
| Wix.com Ltd. | IL | 9,29 Bln | 8,0x | – | – | 28,00% |
| Workday, Inc. | US | 53,3 Bln | 14,0x | – | – | 30,10% |
| Workiva Inc. | US | 6,02 Bln | 15,8x | – | – | 20,00% |
| Yext, Inc. | US | 1,31 Bln | 4,0x | – | – | 32,50% |
| Zendesk, Inc. | US | 12 Bln | 10,4x | – | – | 31,10% |
| Zuora, Inc. | US | 1,78 Bln | 6,4x | – | – | 27,00% |
| Median | 14,0x | 53,2x | 81,4x | 30,50% |
Source: S&P Capital IQ, Valutico (01/10/2021)
Index background
Our basket is of course partial and has no intention to reflect perfectly the entire SaaS Public landscape. Our goal is to give an outlook of the market with a more balanced index of what is available with the US Nasdaq SaaS index. More than 100 Public SaaS companies are available. Here, we focus on European-born leaders like Avast, Datadog, Elastic, Talend, TeamViewer, Zendesk, …
At E-Spring, we like to keep an eye on the SaaS Public companies. The market data gives good insights when we do a private SaaS business valuation. In some ways, it’s always connected to the market. It shows the trends and the confidence in the sector. Who are the champions of the league. So, we decided to construct our own SaaS index of 40 companies that we selected as being as much as possible representative of the SaaS B2B market, keeping the right balance between the US and Europe (European-founded public SaaS companies).
For this outlook, we choose a quarterly report to keep a mid-term view of the market. As much as possible we will keep the same basket but feel free to interact with us to enrich this exercise. We hope it will be helpful in these particular times.
Do you have questions regarding SaaS business valuation? Contact us.
