During the past quarter, valuation levels in the SaaS sector continued to decline. Interestingly, median European and North American valuation multiples virtually converged in Q1 2026. While the market as a whole is showing signs of slowdown, investors remain willing to reward companies with a significant premium if they are able to sustain “healthy growth” (Rule of 40) even in the current turbulent environment.
Our quaterly SaaS report update, based on data from over 370 publicly traded SaaS companies, answers the following questions:
- How have median multiples evolved over the recent period?
- What kind of premium is associated with achieving the Rule of 40?
- What fundamental factors may explain the correction observed in overall valuation levels?
- In a period overshadowed by artificial intelligence, what characteristics must a software company possess in order to preserve its value?
Download and read our quarterly SaaS update to know more!
