SEG Snapshot: 3Q20 SaaS Public Market Update

According to Software Equity Group’s 2020 Q3 report - the SaaS Index reached a record 11.2x for in this third quarter. Investors have clearly identified SaaS as a preferred asset class in 2020, as the median stock price performance of the SEG SaaS Index (+25.9% YTD) has also led the major indices.



  • Public SaaS companies lead major indices in terms of YTD stock price performance, reaching 25.9% by the end of 3Q20.
  • The SEG SaaS Index led an impressive rebound in valuation, surpassing previous records and sustaining a new high in 3Q20. The quarter’s median 11.2x EV/Revenue multiple was 31.7% above the 3-year Index median of 8.5x, and 13% greater than 3Q19’s previous record of 9.9x.
  • Investors continue to favor high quality SaaS companies in times of uncertainty, as companies with high gross profit margins and revenue growth posted the highest valuations. 
  • Development Operations & IT Management (20.7x) and Communications & Collaboration (19.9x) posted the highest valuation multiples out of other cohorts due to increased demand from COVID-19 work from home mandates.


YTD Stock Market Performance

YTD, the SEG SaaS Index is up 25.9% and leads all major indices. Clearly, investors have identified SaaS as a preferred asset class in 2020. 


SEG SaaS Index: Public Market Multiples – Monthly

Public SaaS companies led an impressive rebound and have sustained record median EV/Revenue multiples from June through September

To review SEG’s full 3Q20 report, click here. 

Post Your Comment

Leave another comment.

In order to post a comment, you must complete the fields indicated above.

Post Your Comment Close

Thank you for your comment.

Thank you for submitting your comment, your opinion is an important part of

Your comment has been submitted for review and will be posted to this article as soon as it is approved.

Back to Article

Topics Related to this Article