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Revenue multiples & benchmarks
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The median public cloud software company traded at 4.2x NTM revenue on Sep 25, 2026, per Clouded Judgement — close to the 4.1x it called a 10-year low in January, and far below 20.0x in February 2021.
Source: Clouded Judgement, Sep 25, 2026 (Jamin Ball; enterprise value ÷ next-twelve-months revenue).
Multiples below are enterprise value (market cap + debt − cash) divided by next-twelve-months revenue for Clouded Judgement's universe of public cloud software companies, as published in Jamin Ball's weekly newsletter; every figure links to its dated post. In 2026 the median fell below its 2022 low while the top of the market recovered. The dashboard above is a separate dataset of public tech companies (Yahoo Finance data; it says it was last updated in March 2026), so its figures differ.
| Bucket | Sep 25, 2026 | Jun 5, 2026 | Nov 18, 2022 | Feb 19, 2021 |
|---|---|---|---|---|
| High growth* | 18.0x | 16.3x | 7.4x | 35.8x |
| Mid growth* | 6.7x | 5.0x | 5.3x | 21.8x |
| Low growth (<15%) | 3.3x | 3.0x | 2.3x | 7.7x |
| Top five | 39.7x | 28.9x | 12.6x | 58.3x |
| Overall median | 4.2x | 3.4x | 4.9x | 20.0x |
*Buckets use projected NTM revenue growth, and Clouded Judgement has changed the cutoffs over time (its Dec 6, 2024 post used 27%). In the 2026 posts, high growth is above 22% and mid growth 15–22%; in the 2021 and 2022 posts, high growth was above 30% and mid growth 15–30%.
Company multiples move every week, so this page does not list them. For current constituent-level multiples, use Bessemer's BVP Nasdaq Emerging Cloud Index explorer. Its headline figure is an average, not a median: an average revenue multiple of 8.1x on Sep 30, 2026. An average runs above the median when a few companies trade at very high multiples, so compare it with other averages, not with the medians above.
The single biggest driver. On Sep 25, 2026, Clouded Judgement's high-growth median (above 22% projected NTM growth) was 18.0x, against 3.3x for companies growing under 15% — more than five times as high.
Top-tier SaaS companies run 75–85% gross margins. Below 70% compresses multiples significantly — investors price in higher cost structures at scale.
NRR above 120% signals a compounding growth engine. Companies with >120% NRR trade at a premium; below 100% is a red flag.
Growth rate + free cash flow margin. Companies above 40 are considered efficient. In 2025, Rule of 40 has become the standard efficiency gate — below 40 gets a discount, well above it gets a premium.
Category leaders (rank #1 or #2 in a large TAM) trade at a premium to the category average. Being second in a fragmented market has limited pricing power.
A major multiple driver in 2025–2026. SaaS companies with genuine AI integration (not just marketing) trade at a premium to non-AI peers. The market is pricing in AI as existential — either you have it or you're legacy.
SaaS multiples are duration assets — they compress when interest rates rise and expand when rates fall. The 2021 peak coincided with near-zero rates; the 2022 correction followed Fed tightening. In 2026, Clouded Judgement listed the 10-year Treasury at 4.2% on Jan 30 and 5.2% on Sep 25, and the median multiple stayed between 3.4x and 4.2x in the readings below.
| Reading | Median EV/NTM Revenue | 10-Year Treasury (as listed) | Context |
|---|---|---|---|
| Feb 19, 2021 | 20.0x | — | Near-zero rates, COVID-era software adoption |
| Nov 26, 2021 | 13.5x | — | Bessemer: public cloud market cap peaked at $2.7T in November 2021 |
| Nov 18, 2022 | 4.9x | 3.8% | After the Fed's 2022 hikes |
| Sep 1, 2023 | 6.2x | 4.1% | Partial rebound |
| Dec 6, 2024 | 6.4x | 4.2% | |
| Nov 7, 2025 | 4.9x | 4.1% | |
| Jan 30, 2026 | 4.1x | 4.2% | “The lowest it’s been in 10 years” |
| Jun 5, 2026 | 3.4x | 4.5% | Below the 2022 low; top five at 28.9x |
| Sep 25, 2026 | 4.2x | 5.2% | Top five at 39.7x |
Source: Clouded Judgement (Jamin Ball), weekly "Overall Stats"; each date links to its post. November 2021 context: Bessemer, State of the Cloud 2023. Fed target ranges: FOMC statements of March 16, 2022 and December 14, 2022.
It depends on growth. On Sep 25, 2026, Clouded Judgement's median EV/NTM revenue multiple was 18.0x for public cloud software companies expected to grow more than 22%, 6.7x for 15–22% growers and 3.3x for those under 15%; the overall median was 4.2x. A multiple well above your growth bucket's median needs a reason: retention, margins, or a credible AI revenue story.
4.2x NTM revenue on Sep 25, 2026, per Clouded Judgement's weekly overall median for public cloud software (enterprise value divided by next-twelve-months revenue). Methodology matters: Bessemer's BVP Nasdaq Emerging Cloud Index publishes an average revenue multiple (8.1x on Sep 30, 2026), and an average runs above the median when a few companies trade at very high multiples.
Not at the median. Clouded Judgement's median was 4.9x on Nov 18, 2022, 6.2x on Sep 1, 2023 and 6.4x on Dec 6, 2024, then fell to 4.1x on Jan 30, 2026, which it called the lowest in 10 years, and 3.4x on Jun 5, 2026 before 4.2x on Sep 25. The top of the market did recover: the top-five median was 39.7x on Sep 25, 2026, against 12.6x in November 2022.
Company-level multiples move every week, so use a live source: Bessemer's BVP Nasdaq Emerging Cloud Index explorer ranks its constituents by revenue multiple. As a group, the five highest-multiple companies in Clouded Judgement's universe traded at a median of 39.7x NTM revenue on Sep 25, 2026.
Private SaaS rounds usually price at a discount to public comparables because the shares are illiquid. Anchor to the public median for your growth bucket (18.0x NTM revenue for companies expected to grow more than 22% on Sep 25, 2026, per Clouded Judgement), then apply a discount, rather than anchoring to 2021 prices.
The Rule of 40 states that a SaaS company's revenue growth rate plus its free cash flow margin should equal or exceed 40%. In 2026 it's the minimum bar — companies below 40 get a material discount, and companies well above it trade at a premium. The market has shifted from 'growth at all costs' to 'efficient growth.'
Clouded Judgement's median EV/NTM revenue multiple was 20.0x on Feb 19, 2021 and 13.5x on Nov 26, 2021, when its one-year trailing average was 16.1x. The top five traded at 58.3x and 56.0x. Near-zero interest rates and COVID-era software adoption drove the run; Bessemer marks November 2021 as the peak of public cloud market capitalization, at $2.7 trillion.
The median fell to 4.9x NTM revenue by Nov 18, 2022, from 13.5x a year earlier (Clouded Judgement), as the Fed raised its target range from 1/4–1/2 percent in March 2022 to 4-1/4–4-1/2 percent in December.
Clouded Judgement's median was 6.2x NTM revenue on Sep 1, 2023, up from 4.9x in November 2022, with the 10-year Treasury at 4.1%.