The median public SaaS company trades at 6.8x NTM Revenue in May 2026. In November 2021, that number was 15–20x. The correction is real, it is documented, and if you are valuing a SaaS company without the right comparables set, you are guessing.
SaaS comps are not optional. They are the foundation of any credible SaaS valuation — whether you are raising a round, making an investment, or running an M&A process. Getting the comps right means knowing which public companies to include, which metrics to weight, and how to translate a public multiple into a private company price.
What Are SaaS Comps and Why Do They Matter?
SaaS comparables are a curated set of public SaaS companies that share key characteristics — growth rate, gross margin, ARR scale, go-to-market motion, and vertical focus — with the company you are trying to value. The premise is simple: the market has already priced these companies. You use that market pricing to benchmark the private company.
The most commonly used SaaS multiple is EV/NTM Revenue (enterprise value divided by next-twelve-months revenue). NTM is preferred over LTM (last-twelve-months) because it is forward-looking and better reflects growth expectations. Investors pay for the future, not the past.
EV/NTM Revenue
Most widely used SaaS multiple — forward-looking, growth-adjusted
EV/ARR
Used for pre-revenue or early-stage companies where GAAP revenue lags ARR
EV/NTM Gross Profit
Better for comparing companies with very different gross margin profiles
EV/EBITDA
Relevant for profitable or near-profitable SaaS companies with >$50M ARR
Current Public SaaS Comps: The Data (May 2026)
Here is where public SaaS multiples actually sit in May 2026, segmented by the metrics that drive the most multiple differentiation. Track live data on the SaaS Valuations Dashboard.
| Segment | Median EV/NTM Rev | Top Quartile | Bottom Quartile |
|---|---|---|---|
| All public SaaS | 6.8x | 12.4x | 3.1x |
| Revenue growth >40% YoY | 13.2x | 18.5x | 9.0x |
| Revenue growth 20–40% YoY | 8.9x | 12.1x | 5.8x |
| Revenue growth 10–20% YoY | 5.4x | 8.2x | 3.3x |
| Revenue growth <10% YoY | 3.8x | 5.6x | 2.0x |
| Rule of 40 > 40% | 11.7x | 17.2x | 8.3x |
| Rule of 40 20–40% | 7.1x | 10.4x | 4.9x |
| Rule of 40 < 20% | 3.9x | 5.8x | 1.8x |
Source: BVP Nasdaq Emerging Cloud Index, Jamin Ball Clouded Judgement, public filings. Data as of May 2026.
How to Build the Right SaaS Comps Set
The most common mistake founders and investors make with SaaS comps is picking companies that look similar on the surface but have fundamentally different economics. Here is the screen I use:
1. Match gross margins first
SaaS gross margins vary from 55% (infrastructure-heavy) to 85% (pure software). A 70% gross margin company should not be compared against a 55% gross margin company — the underlying unit economics are incomparable. Only include comps with gross margins within ±10 percentage points.
2. Match revenue growth bands
The biggest driver of EV/Revenue multiples is growth rate. Group comps into bands: <10%, 10–20%, 20–40%, >40%. Mixing a 15% grower with a 45% grower in the same comps set produces a meaningless average. Stick within a ±15 percentage point range.
3. Match go-to-market motion
PLG (product-led growth) companies, enterprise sales-led companies, and SMB-focused companies command fundamentally different multiples because their churn, CAC, and expansion revenue dynamics differ. Segment your comps by primary GTM motion.
4. Match ARR scale
A $5M ARR company should not use a $500M ARR company as a comp. Scale affects predictability, churn rates, and growth potential. For private company valuation, use comps that were at a similar scale at a similar stage — look at historical filings if needed.
5. Apply a private-market discount
Private companies are illiquid, typically smaller, and carry higher key-person and concentration risk. The standard private discount to public SaaS comps is 20–30% for Series B+ companies and 30–40% for Seed/Series A. In the current risk-off environment (2024–2026), apply the higher end of these ranges.
Where to Find Public SaaS Comparables
These are the sources I actually use. All are either free or low-cost:
Jamin Ball – Clouded Judgement
Best weekly tracker of public SaaS multiples, segmented by growth, profitability, and ARR. Free Substack with premium tier.
cloudedjudgement.substack.com
BVP Nasdaq Emerging Cloud Index
Bessemer's public cloud index tracks 70+ public SaaS companies with full financial data and historical multiples.
index.bvp.com
SEC EDGAR Filings
10-K and 10-Q filings give you exact ARR, NRR, gross margin, and CAC data for any public SaaS company — straight from the source.
sec.gov/edgar
Value Add VC SaaS Dashboard
Live EV/Revenue and EV/EBITDA multiples for public SaaS companies, updated weekly with Rule of 40 and NRR filters.
/saas-valuations
Applying SaaS Comps to a Real Valuation
Here is how to translate a public comps set into a private company price. Assume you are valuing a Series B SaaS company with $8M ARR, growing 35% YoY, 74% gross margin, 115% NRR, and no meaningful profitability (Rule of 40 score of ~35%).
SaaS comps are only as good as the selection criteria you use.
Growth rate, gross margin, and Rule of 40 — not industry category — should determine which companies end up in your comp set.
Track live public SaaS multiples and build your own comps set on the SaaS Valuations Dashboard. For broader market context, see the Benchmarking tool at Value Add VC. Originally published in the Trace Cohen newsletter.