AGC Partners is a middle-market investment bank focused on SaaS (software as a service) companies. Its February update included the following three charts:
Chart 1: The 100 stocks in AGC's SaaS index were trading at an enterprise value to trailing 12 months' revenue ratio of 12x in January 2020. By January 2021 they were trading at 22x trailing revenues, driven by COVID, low interest rates and massive fiscal and monetary stimulus. Now we're back at 12x.Note the similarity between AGC Partners' chart of unprofitable SaaS stocks with Goldman Sachs' non-profitable tech index.
AGC Partners' SaaS index comprises the 50 largest SaaS stocks by market cap, plus the next 50 high fliers by revenue multiple.
The 50 largest SaaS stocks by market cap in the index are: Adobe (NASDAQ:ADBE), Salesforce (NYSE:CRM), ServiceNow (NYSE:NOW), Atlassian (NASDAQ:TEAM), Snowflake (NYSE:SNOW), Workday (NASDAQ:WDAY), Autodesk (NASDAQ:ADSK), Block (NYSE:SQ), Palo Alto Networks (NASDAQ:PANW), Zoom (NASDAQ:ZM), Datadog (NASDAQ:DDOG), CrowdStrike (NASDAQ:CRWD), Veeva (NYSE:VEEV), Zscaler (NASDAQ:ZS), Okta (NASDAQ:OKTA), Cloudflare (NYSE:NET), DocuSign (NASDAQ:DOCU), HubSpot (NYSE:HUBS), ZoomInfo (NASDAQ:ZI), Paycom (NYSE:PAYC), Bill.com (NYSE:BILL), Confluent (NASDAQ:CFLT), Qualtrics (NASDAQ:XM), RingCentral (NYSE:RNG), Dynatrace (NYSE:DT), NortonLifeLock (NASDAQ:NLOK), PTC (NASDAQ:PTC), Fair Isaac (NYSE:FICO), Xero (OTCPK:XROLF), Zendesk (NYSE:ZEN), Ceridian (NYSE:CDAY), SentinelOne (NYSE:S), Bentley (NASDAQ:BSY), Paylocity (NASDAQ:PCTY), Coupa Software (NASDAQ:COUP), Dropbox (NASDAQ:DBX), Avalara (NYSE:AVLR), Asana (NYSE:ASAN), GitLab (NASDAQ:GTLB), Monday.com (NASDAQ:MNDY), Five9 (NASDAQ:FIVN), Procore (NYSE:PCOR), Elastic (NYSE:ESTC), Pegasystems (NASDAQ:PEGA), Smartsheet (NYSE:SMAR), New Relic (NYSE:NEWR), Anaplan (NYSE:PLAN), Workiva (NYSE:WK), Nutanix (NASDAQ:NTNX) and Freshworks (NASDAQ:FRSH).