Welcome to the latest edition of Silverpeak’s Software Benchmark report.
This report provides analysis of valuation and operating metrics across public software companies in the US and Europe.
Key findings:
- The US saw the steepest valuation declines, reflecting greater exposure to previously stretched software multiples and heightened sensitivity to AI disruption.
- European valuations (particularly UK and DACH) were relatively more resilient, though starting from less elevated levels.
- Valuations continue to correlate to the Rule of 40, albeit with heightened focus on profitability vs. growth at all costs – companies with similar Rule of 40 scores but higher profitability traded at a slight premium (5.6x) to companies with higher growth and lower profitability (3.9x).