The E-Spring B2B SaaS Index (2021 Q3)

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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.

NameCountryMarket Cap (EUR)EV/SALES 2021EV/EBITDA 2021P/E 2021Sales CAGR
(2018 – 2020)
Adobe Inc.US237 Bln17,4x34,1x45,9x19,40%
Alteryx, Inc.US4,15 Bln8,7x39,80%
Anaplan, Inc.US7,65 Bln19,3x43,80%
AppFolio, Inc.US3,59 Bln11,5x97,5x27,70%
Atlassian Corporation PlcAU84 Bln35,40%
ATOSS Software AGDE1,43 Bln14,6x47,2x81,4x17,20%
ATTRAQT Group plcUK89,2 Mio3,1x80,1x10,70%
Avalara, Inc.US13 Bln21,8x35,60%
Avast PlcCZ6,8 Bln9,0x16,4x20,3x5,10%
AVEVA Group plcUK12,5 Bln13,8x72,9x30,90%
BlackLine, Inc.US5,93 Bln16,1x24,30%
Blue Prism Group plcUK1,29 Bln5,8x60,00%
Datadog, Inc.US36,9 Bln74,50%
DocuSign, Inc.US43,5 Bln34,8x37,10%
Dynatrace, Inc.US17,2 Bln28,5x17,10%
Elastic N.V.US11,7 Bln21,7x63,50%
Everbridge, Inc.US5,08 Bln16,2x35,80%
HubSpot, Inc.UK27,6 Bln24,8x31,20%
Medallia, Inc.US4,7 Bln11,1x24,10%
Mimecast LimitedUK3,63 Bln8,3x56,9x141,7x27,70%
Nemetschek SEDE10,5 Bln15,7x49,4x81,8x13,60%
New Relic, Inc.US3,95 Bln6,4x29,90%
PagerDuty, Inc.US3,11 Bln15,5x44,50%
Paycom Software, Inc.US24,7 Bln27,5x69,5x111,5x21,90%
RIB Software SEDE2,26 Bln7,1x29,3x36,40%, inc.US228 Bln12,0x81,8x65,0x27,40%
ServiceNow, Inc.US105 Bln20,6x63,6x104,7x31,60%
Sidetrade SAFR228 Mio6,4x46,2x71,3x10,00%
Smartsheet Inc.US7,58 Bln21,9x56,00%
Splunk Inc.US19,1 Bln10,3x34,20%
Talend S.A.FR1,87 Bln18,20%
TeamViewer AGDE5,11 Bln10,5x19,9x29,1x32,80%
Unity Software Inc.US30,6 Bln32,1x42,40%
Veeva Systems Inc.US37,4 Bln28,5x114,2x26,40% Ltd.IL9,29 Bln8,0x28,00%
Workday, Inc.US53,3 Bln14,0x30,10%
Workiva Inc.US6,02 Bln15,8x20,00%
Yext, Inc.US1,31 Bln4,0x32,50%
Zendesk, Inc.US12 Bln10,4x31,10%
Zuora, Inc.US1,78 Bln6,4x27,00%
Median  14,0x53,2x81,4x30,50%

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.

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