SaaS sector fell below market valuation for the first time on record. Breaking down which names are actually cheap vs. just lower priced.

Hi r/investing, I'm the GM of the stock research side at Obermatt, a Swiss investment research firm that ranks stocks across 60+ markets on four factors (Value, Growth, Safety, Sentiment) relative to industry peers. Standard disclosure: this is our own research, sharing it here because I think the framework is useful for this community, not to sell anything.

The AI-driven selloff pushed the entire SaaS sector below the broad market on forward earnings for the first time on record. That's a meaningful shift for a sector that traded at a premium for most of the last decade. But a sector-wide drop doesn't mean every stock in it got equally cheap, some just fell alongside the rest without their valuation actually resetting. Ran our Value Rank on twelve well known SaaS names from Europe, North America and Asia-Pacific to see where the dispersion actually is.

**Genuinely cheap, backed by fundamentals (Value Rank 55+):**

* **RingCentral** (Value 100) and **Open Text** (Value 100): both trade slower growth for strong free cash flow. Open Text's cloud business has grown organically for 21 straight quarters.
* **Intuit** (Value 87, Combined 98): revenue up 10%, dividend raised 15%, yet the stock dropped 20% on results day.
* **Salesforce** (Value 87): Agentforce ARR passed $1.2B, grew over 200%, stock still down roughly a third over the year.
* **SAP** (Value 57): cloud revenue up 27% at constant currency, stock still down \~40% on the year.
* **Dassault Systèmes** (Value 55): fairly priced, but Growth Rank is only 31 on 3% revenue growth, so this one's a pace problem, not a price problem.

**Cheap, but check the other ranks first (Value Rank 40s):**

* **Adobe** (Value 47): reasonably priced, but Sentiment Rank is the lowest of the twelve (25). AI-first recurring revenue tripled past $500M, market still doesn't trust the pivot.
* **WiseTech Global** (Value 42): strong growth (93), restructured pricing to hedge against AI eroding per-seat SaaS models, but Safety Rank is only 33 due to layoffs and restructuring costs.
* **Trend Micro** (Value 41): the defensive name here, Safety Rank of 94, \~70% dividend payout.

**Never really got cheap despite the selloff (Value Rank under 30):**

* **ServiceNow** (Value 27): beat every metric, still fell 17% on results day, worst single session in company history.
* **Snowflake** (Value 4) and **Cloudflare** (Value 1): both growing 34%+, but priced for that growth to keep compounding for years just to justify today's valuation.

Full write-up with sourcing on the earnings/news behind each score: [https://link.obermatt.com/saas-en/](https://link.obermatt.com/saas-en/)

For the value-oriented investors here specifically: when a whole sector gets repriced like this, how do you personally separate "genuinely cheap" from "cheap because the market hasn't caught up yet"? Curious whether people here lean more on relative valuation (like this) or absolute thresholds.