Morgan Stanley Investment Banking Pitch Book
Morgan Stanley
Software Multiples Have Significantly Compressed From Recent
Highs
NTM Forward Revenue Multiples of Software Companies Since January 2002
NTM AV / Revenue Multiple
80x
70x
60x
50x
40x
30x
20x
10x
Ox
Sep-02
Apr-03
Average
Pre-GFC
GFC
Post-GFC
to COVID
COVID to
Peak
2021
Peak
Current
Nov-03
Jun-04
PROJECT ORANGE
Jan-05
Source: Capital IQ, as of 9/12/2022
Time
Period
Jan 2002
Nov 2007
Dec 2007
Jun 2009
Jul 2009
Jan 2020
Jan 2020
Oct 2021
Oct 2021
Aug-05
Oct-06
Mar-06
Top-5
Revenue
Multiple
All Software
7.5x
6.0x
13.1x
45.4x
67.5x
19.4x
May-07
Dec-07
Jul-08
All
Software
Revenue
Multiple
3.6x
2.8x
5.1x
12.0x
14.6x
6.1x
Feb-09
Sep-09
Apr-10
Top 5 Software
Nov-10
Jun-11
Jan-12
Mar-13
Aug-12
7.4x
Oct-13
3.7x
Dec-14
May-14
Jul-15
Average of All Software (1998-2014)
PRELIMINARY AND CONFIDENTIAL DRAFT
Feb-16
www
Sep-16
Apr-17
Nov-17
Jun-18
Jan-19
Aug-19
Peak 2021: 67.5x
Peak 2021: 14.6x
Oct-20
Mar-20
May-21
Average of All Software (2014 - )
Dec-21
19.4x
6.1x
Sep-22
REFERENCE MATERIALS
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