Valuation Calculator
Valuation is the estimated enterprise or equity value of a SaaS company, often informed by revenue multiples, growth, efficiency, and market conditions.
Valuation = ARR × Revenue Multiple | Variable | Meaning |
|---|---|
ARR | Annual recurring revenue. |
Revenue Multiple | Market revenue multiple for comparable SaaS companies. |
Worked example
- ARR
- $2,000,000
- Revenue Multiple
- 8
- → Valuation
- $16,000,000
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Valuation Formula
Valuation = ARR × Revenue Multiple | Variable | Meaning |
|---|---|
ARR | Annual recurring revenue. |
Revenue Multiple | Market revenue multiple for comparable SaaS companies. |
How to Calculate Valuation
Worked example
- ARR
- $2,000,000
- Revenue Multiple
- 8
- → Valuation
- $16,000,000
Full definition, benchmarks, and common mistakes live on the Valuation glossary page.