B2B SaaS: 2026 Valuation Multiples

Software-as-a-Service companies – and B2B SaaS in particular – have benefitted from the increased digitalisation of the workforce brought about by the pandemic, leading to a huge number of companies adopting cloud or subscription based solutions to manage their operations and people.

On the public markets, SaaS stocks are popular among investors, and that popularity has shifted into overdrive as a result of the COVID pandemic. Perhaps most notably, B2B SaaS solutions achieved double-digit valuation multiples over the pandemic, driven by the mass shift to remote working.

B2B SaaS refers to companies that provide software (app, extensions, add-ons etc.) directly to other businesses as a service, as opposed to B2C, which sell their software directly to individual consumers.

The seemingly relentless growth of the sector, however, came to a halt at the end of 2021—together with public markets and the broader tech sector—with industry giants announcing layoffs and market caps in the SaaS space slashed by 57% on average, which led many to call 2022 the year of the SaaS Crash.

In addition to investors shifting towards less risky options in recent years, as public markets became more cautious compared to the 2019-2021 bull run, the B2B sector was impacted by a twofold effect of the cost-of-capital crisis, with spending being cut both internally and by their own customer base.

In order to understand just how much these conditions influenced B2B SaaS company valuations, we analysed public market data going back seven years, which enabled us to compare current valuation multiples with their pre-pandemic counterparts.

Our research is based on the SEG SaaS Index, which lists over 130 publicly traded companies that “primarily offer solutions via the cloud and/or through a subscription or transaction-based model”.

After screening for organisations that record 100% of their revenues from business-to-business sales, 90 companies within the SEG SaaS Index were identified as part of the B2B SaaS cohort.

Many of the companies in the cohort (13 companies) have some sort of vertical focus, meaning they provide B2B solutions to specific sectors, think AppFolio for real estate or Health Catalyst for healthcare providers. Other significant subsectors include Sales & Marketing, Communication & Collaboration, DevOps & IT Management and Security.

Source: SEG

“Other” is comprised of 8 companies, which included Biotech, Insurance and Hospitality among others.

Editorial Note: while we used to report quarterly data from 2020 to 2022 in order to show at a granular level how the market was reacting to the sudden changes caused by the COVID-era investment landscape, we have subsequently switched to annualised data, which better shows long-term trends dictated by the macroeconmic environment, which are more representative of the current market forces at play.

B2B SaaS Valuation Multiples

B2B SaaS Multiples have historically averaged higher than most other tech sectors. Investors love this space because of how (somewhat) predictable demand is and how its unit economics and metrics can be modelled into relatively accurate revenue projections.

However, because of this perceived lower risk, B2B SaaS businesses suffered a the post-pandemic “bubble-burst” moment more than other sectors, with revenue multiples that had peaked above 12x in 2021 being halved within just a few months.

Some say that the sector never really recovered from this, but in the grand scheme of things B2B SaaS companies continue to show very healthy revenue and profit multiples, having kept the benchmark consistently around 6x for revenue for the past four years.

While 2024 saw a slight recovery to 6.7x, multiples contracted again in 2025, settling at 5.9x.

Source: SEG

B2B SaaS revenue multiples followed a trend comparable to that of its counterparts in the broader SaaS sector.

The quartiles analysis shows how the increase of variance, especially in the upper quartiles, goes hand in hand with positive economic conditions and investor sentiment. In 2022, along with high-inflation, looming recession indicators and skyrocketing energy prices, the top performers in terms of multiples could no longer command such a high valuation premium compared to their revenue, with variance decreasing tenfold by 2023.

While 2024 saw a slight widening in variance (with maximums reaching 22.8x), 2025 saw the interquartile range tighten again, despite a few outliers pushing the maximum limit up to 25.1x.

Source: SEG

In the chart above, the lines indicate the range of EV/Revenue multiples in our cohorts, while the boxes highlight the Interquartile Range (IQR), which is where the median 50% of the cohort ranks based on their valuation multiple.

The SaaS space—and the B2B subsector in particular—are known for highly rewarding profit-making companies, which are still only a fraction of the total: about a third of the cohort used for this analysis.

Shooting up from just over 30x to over 55x between 2019 and 2021, median EBITDA multiples anticipated their Revenue counterparts, beginning to decrease steadily from the second quarter of 2021.

In 2023, the median EBITDA multiple for B2B SaaS companies in the cohort dropped to 29.7x. Although this multiple experienced a brief bump to 35.7x in 2024, it returned exactly to 29.7x by the end of 2025, remaining closely in line with pre-pandemic levels.

Source: SEG

Differently from what we saw with Revenue multiples, however, overall variance of EBITDA multiples has remained wide over the past seven years, stretching out the upper quartile significantly in recent years. In fact, maximum EV/EBITDA outliers skyrocketed well past 360x in both 2024 and 2025, despite the otherwise tempered market medians.

This goes to show how companies that are able to prove their profitability even through adverse macroeconomic conditions can still command a massive premium on their valuation.

Source: SEG

In the chart above, the lines indicate the range of EV/EBITDA multiples in our cohorts, while the boxes highlight the Interquartile Range (IQR), which is where the median 50% of the cohort ranks based on their valuation multiple.