The Impact of the Stock Market on SaaS Valuations in 2015

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tomtunguz.comThe public markets are down more than 10% from their highs in the last few months. Public SaaS companies have been particularly hard hit. The chart above shows the enterprise value of publicly traded SaaS companies. Many of them are down substantially more than 10%. Let’s dig in a bit more.

While there are five companies who currently sit at their all time highs, as of August 21, more than 90% of the SaaS companies are below at a median decline of 40%. Apigee is down 80% and MobileIron has lost more than 60%. The impact to SaaS valuations, in the public markets, is broad, and most of these names, which have benefitted from better than average multiples, are seeing the downside of those aggressive valuations in the form of larger than typical corrections.

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