Software As A Service Multiples. On May 21 the Massachusetts Supreme Judicial Court issued its opinion in Oracle USA Inc. Common examples are email calendaring and office tools such as Microsoft Office 365.
In English that means that the average company on the Index is worth 100 times its 2018 revenue. PE multiples ranging from 5 to 50 are common in the software industry with growth of company and growth of industry directing the selection of the multiple. Researcher has been monitoring the software as a service SaaS market and it is poised to grow by 9999 billion during 2021-2025 progressing at a CAGR of over 11 during the forecast period.
Per the dataset public cloud companies SaaS unicorns often are trading for a 10x trailing enterprise value-revenue multiple.
On May 21 the Massachusetts Supreme Judicial Court issued its opinion in Oracle USA Inc. Software as a Service SaaS is a unique and growing industry and one that requires special considerations when it comes time to selling. Software as a service SaaS allows users to connect to and use cloud-based apps over the Internet. As the market-leading advisor for SaaS business sales the team at FE International answers questions every day about the best practices of selling a SaaS business and which SaaS metrics should be measured.
