B2B SaaS Valuation Calculator [2024 Multiples]
Instantly calculate the value of your B2B SaaS using up-to-date B2B SaaS valuation multiples:
$
%
Valuation:
$360,000
x
Simple B2B SaaS Valuation Formula
Valuation ($) = ARR/EBITDA ($) x Multiple
The valuation of software companies is unique, in that it's conventionally based on the multiple of revenue (ARR).
Other companies, are typically valued on the multiple of EBITDA (a fancy word for profit).
Some investors also factor additional factors, such as:
1. Replaceability: How many lines of code your software has.
2. Net Revenue Retention: How much revenue you retain, meaning: do people keep buying your software after the first purchase?
3. Profitability, aka the 'Rule of 40' - click here for a free 'Rule of 40' calculator.
All those factors can influence your multiple, leaving you with a higher valuation than the current market rate.
Other companies, are typically valued on the multiple of EBITDA (a fancy word for profit).
Some investors also factor additional factors, such as:
1. Replaceability: How many lines of code your software has.
2. Net Revenue Retention: How much revenue you retain, meaning: do people keep buying your software after the first purchase?
3. Profitability, aka the 'Rule of 40' - click here for a free 'Rule of 40' calculator.
All those factors can influence your multiple, leaving you with a higher valuation than the current market rate.
SaaS Revenue Multiples Over Time (2015 - 2024)
Source: Capital IQ as of April 2024
Recent SaaS Acquisition Multiples Based On Location
Where you locate your business significantly impacts the acquisition value of your B2B SaaS. Discover the median data of business acquisition value and the associated multiples:
| Country | Valuation | Revenue multiple | EBITDA multiple |
|---|---|---|---|
| USA | $300 million | 5.8x | 31.7x |
| United Kingdom | $34 million | 4.7x | 16.0x |
| Norway | $27 million | 5.4x | 21.3x |
| Australia | $58 million | 5.5x | 9.1x |
| Canada | $75 million | 5.4x | 56.5x |
| France | $45 million | 3.0x | 15.1x |
| Others | $10 million | 3.4x | 21.1x |
Source: Mergermarket
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