Analysisenterprise softwaregenerative aicybersecuritypalantir
Software Valuations Drive Down 10x ARR Club
7.2
Public B2B software valuations have collapsed in February 2026, with median revenue multiples falling from roughly 18x in 2020 to about 4x today and the average near 6.6x. The sector-wide selloff, driven by AI disruption fears, left only a handful of firms — led by Palantir, Cloudflare, Shopify, CrowdStrike and Snowflake — trading at or near 10x revenue.
Key Points
- 1Report shows median public B2B revenue multiple fell from ~18x in 2020 to ~4x in Feb 2026
- 2Attributes valuation compression to AI disruption fears and a sector-wide selloff
- 3Suggests investors and practitioners prioritize revenue growth, AI alignment, and non-discretionary security/infra businesses
Scoring Rationale
Timely, industry-wide market analysis with actionable company-level details; limited by single-source commentary rather than formal report.
Sources
Public references used for this report.
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