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Cheap SaaS Stocks and Other Factors to Consider
By The Good Investors  •  March 27, 2021
Software-as-a-service (SaaS) companies are one of the more exciting groups of growth companies in the market today. Many SaaS companies are growing their businesses at lightning speed, boast giant addressable markets, fat gross margins, and have sticky user bases.  With the recent drop in SaaS valuations, it may be a good time now to take a look at which SaaS companies are offering the best valuations and growth. Scatterplot of SAAS companies In his recent weekly update on SaaS stocks, venture capitalist Jamin Ball provided a scatterplot of US-listed SaaS companies based on their growth and enterprise-value-to-next-12-months (EV-NTM) revenue multiple. Source: Clouded Judgement Substack by Jamin Ball The horizontal axis shows the companies’ NTM consensus growth rate, while the vertical axis shows their EV-NTM revenue multiples. Companies that are further right on the scatterplot are growing the fastest and the companies that are higher up have the highest...
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By The Good Investors
We are Chong Ser Jing and Jeremy Chia, and we started The Good Investors in the aftermath of The Motley Fool Singapore’s closure in late 2019. We both have a passion for stock market investing and believe deeply in enriching society through our investing activities. One way we can do so is through investor-education. The Good Investors is our personal investing blog and will serve as a free platform for both of us to openly share our investing thoughts with you.
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