Valuation Trading Multiples & Precedent Transactions: Enterprise ITSM and Observability Software
Valuation benchmarks for Enterprise ITSM and Observability Software. Access public trading comps, EV/EBITDA acquisition multiples, and private market data for pitch books and valuation analysis.
1.1 - Enterprise ITSM and Observability Software Market Context & Valuation Drivers
Companies in this trading comparable group are public, cloud-based software providers delivering enterprise IT service management and observability platforms. They monetize via recurring subscriptions and usage-based pricing, enabling IT operations, DevOps, and SRE teams to manage incidents, changes, assets, and monitor infrastructure and applications at scale. They are grouped as comps given similar B2B go-to-market, platform breadth, sticky workloads, and expanding multi-product adoption.
Typical capabilities include IT service desk functions such as incident, problem, change and release management powered by workflows, service catalogs, and a configuration management database with asset tracking. On the observability side, they offer infrastructure monitoring, application performance monitoring, log management, metrics and traces ingestion, real-time alerting, anomaly detection, dashboards, and analytics. Broad integration ecosystems, automation, and AI-assisted root-cause analysis enhance operational efficiency and cross-domain visibility.
Primary buyers include enterprise IT organizations, DevOps and SRE teams, and managed service providers across cloud-first and traditional enterprises. Valuation benchmarks emphasize ARR and revenue growth, gross margins typical of SaaS, net revenue retention driven by multi-product attach, and customer expansion via seats and usage. Additional indicators include churn rates, contract duration, and Rule of 40 performance reflecting durable, high-visibility recurring revenue models.
2. Valuation Analysis: Public Trading Comps & Multiples for Enterprise ITSM and Observability Software companies
2.1 - Public Peer Groups & Median Valuation Multiples for Enterprise ITSM and Observability Software sector
Comparable group 1: Enterprise ITSM and Observability Software
ServiceNow
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of enterprise cloud computing solutions that help organizations to manage digital workflows. The platform integrates artificial intelligence, machine learning, robotic process automation, and other tools to automate and optimize operations across various departments including IT, HR, customer service, and security.
- Key Products:
- IT Service Management: Incident and problem management, cost management, service catalog, change and release management, configuration management database, asset management
- Human Resources Service Delivery: HR case management, employee service center, knowledge management, performance analytics
- Customer Service Management: Omnichannel communication, case management, knowledge base management, performance analytics
- Security Operations: Incident response, threat intelligence, vulnerability response, security incident management
- IT Operations Management: Event management, operational intelligence, cloud provisioning and governance.
Datadog
- Enterprise value: $●●●m
- Market Cap: $●●●m
- EV/Revenue: ●.●x
- EV/EBITDA: ●●.●x
- Description: Provider of a monitoring and analytics platform for developers, IT operations teams, and business users, delivering infrastructure and application performance monitoring, log management, and security for cloud applications.
- Key Products:
- Infrastructure monitoring: Real-time monitoring of cloud infrastructure providing insights for operational efficiency
- Application performance monitoring: Tool to monitor application performance, detect anomalies, and troubleshoot issues
- Log management: Centralized logging solution to analyze and manage logs from multiple sources
- Security monitoring: Continuous security monitoring of IT infrastructure, applications, and networks
- Real user monitoring: Tracks user interactions and provides insights into user experience.