SaaS PSG Ratio: Growth-adjusted valuation still shows major dispersion across software stocks

PSG helps compare software companies by looking at valuation relative to expected growth, not valuation alone.

A lower PSG can signal a more attractive growth-adjusted setup, while a higher PSG usually means the market is already paying a large premium for future growth.

Companies below this line look better positioned on a growth-adjusted EV/Sales basis. Companies far above it need stronger execution to justify the premium.

$ZETA, $MNDY, $TOST screen among the most attractive on PSG, all near 0.1x.

$AMZN, $FIG, $DUOL, $DDOG, and $NOW also sit below the group average, suggesting better growth-adjusted valuation than many SaaS peers.

The expensive side is concentrated in names like $NET, $PLTR, $CRWD, where PSG multiples are meaningfully above the group average.