B2B software valuations fall as the Fed and ECB raise rates

B2B software valuations eased in September 2026. The B2B Software Universe fell 5.3% during the month and is now up 1.5% year-to-date, lagging the S&P 500 (up 11.8%) and the Nasdaq (up 15.6%). EV/Sales NTM multiples eased to 4.8x, significantly below the 10-year average of 6.6x and near levels last seen in Q1 2017, as the Federal Reserve and the ECB both raised rates. Cybersecurity (+49% YTD) and Infrastructure Software (+25% YTD) remain the two strongest segments for the year.

What this month's report covers

Dedale Intelligence's October 2026 Market Session covers five key themes across B2B software and technology markets:

• Valuations and market performance. EV/Sales NTM at 4.8x and EV/EBITDA at 18.0x, with breakdowns by growth, FCF margin and Rule of 40 cohorts. The US-Europe premium widened to 105%, and the valuation premium for growth over FCF margin has fallen to 1%.
• GRC segment deep dive. Dedale Intelligence tracked around 139 GRC deals year-to-date 2026, led by VC and growth investors. Its GRC Survey of 100 customers shows 73% expect GRC software spending to increase over the next five years, with predictive analytics and automated risk assessment rated the most important AI use cases.
• Deal activity across PE, corporate M&A and venture capital. Corporate M&A reached around €28B across 228 deals in Q3 2026, more than double Q3 2025, driven by World Labs, GBTG and Miro. AI value chain investment reached $408B year-to-date, versus $223B for all of 2025.
• Macro environment and IPOs. Headline CPI held at 3.4% in August, the Fed raised rates for the first time since July 2023 and the ECB delivered its second hike of the year. September saw 9 IPOs, well below the long-term average of 32, with no significant B2B software listing.
• Earnings. Across the 13 companies tracked, 12 beat consensus and 11 raised guidance, yet only 3 traded up as the market rewarded accelerating growth and cash generation.

The full report contains detailed valuation tables by segment and cohort, the complete GRC deep dive including the GRC Survey results, AI disruption assessment and deal analysis, the full deal and IPO trackers, and the segment zoom covering financials, valuations and earnings across the B2B software universe.

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