Software Index
State of the Market
N/A
Median
NTM Rev Multiple
5.2x
Median
NTM Rev Growth
10.1%
Median
Gross Margin
75.2%
Top 10*
NTM Rev Multiple
13.8x
Top 10*
NTM Rev Growth
21.6%
Top 10*
Gross Margin
75.5%
*Median multiple, growth rate, and gross margin for the top 10 companies based on EV/NTM Revenue.
Valuation Trends
Index Leaders
Top 10 companies in the Software Index based on current EV / NTM Revenue Multiple.
Multiples by Growth Tranche
Valuation multiples are strongly correlated to expected growth. Scalar has selected the tranches based on current market conditions.
EV/NTM Revenue Multiple
High Growth (> 20%)
11.0x
Multiple | Growth |
|---|
EV/NTM Revenue Multiple
Average Growth (10%-20%)
6.7x
Multiple | Growth |
|---|
EV/NTM Revenue Multiple
Low Growth (< 10%)
3.6x
Multiple | Growth |
|---|
EV/NTM Revenue Multiple - Top Quartile
NTM Revenue Multiple and NTM Growth Rate for the top quartile of companies in the Scalar Software Index, ordered by NTM Growth Rate.
Enterprise Software Operating Metrics
Last updated Q3 2024
Median
Net Dollar Retention
108.0%
Median
ARR Growth
14.4%
Median
Payback Period
32 months
Top 10*
Net Dollar Retention
116.0%
Top 10*
ARR Growth
27.4%
Top 10*
Payback Period
22 months
*Median multiple, growth rate, and gross margin for the top 10 companies based on EV/NTM Revenue.
Pre- & Post- Money Deals
Averages for the trailing 6 months of successful software and SAAS fundraising, including rounds Series A through Series D.
Average
Deal Size
Average
Pre-Money Valuation
Average
Post-Money Valuation
The data for the Scalar Software Index is collected based on market data on the last trading day of the previous month.
Metric definitions:
- EV/NTM Rev: Enterprise value to next twelve months revenue.
- EV $MM: Enterprise value, calculated as the market value of equity plus net debt and minority interest, in millions of USD.
- LTM Rev $MM: The last twelve months revenue in millions of USD.
- NTM Rev Growth: The expected growth rate of revenue for the next twelve months.
- LTM Rev Growth: The growth rate of revenue over the last twelve months.
- Gross Margin: The percentage calculated from gross profit over revenue.
- Operating Margin: The percentage calculated from operating income (EBIT) over revenue.
- FCF Margin: The percentage calculated from unlevered free cash flow over revenue.
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Data Sources: S&P Global Market Intelligence and PitchBook Data, Inc.
Enterprise Software Operating Metrics provided by Public Comps.
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