What Price is Right? - Valuing SaaS and Enterprise Software

Valuing a Software as a Service (SaaS) company vs an Enterprise software company is challenging - this in-depth analysis compares the relative strengths of the SaaS business model, and looks at how SaaS companies compare to others in terms of market valuations. Deferred and maintenance revenues are analyzed, as are the stock market performance of SaaS and enterprise software companies. This note is useful for marketing directors, and software buyers eager to understand how SaaS companies compare to traditional software companies in terms of valuation, business performance, and operating efficiency.