Revenue vs. EBITDA for SaaS

It is convenient to talk about revenue or EBITDA multiple. But there is no way either has any meaning for an investment decision. The true, and the only, answer is that one must run IRR analysis that will consider cash flow, financing and debt-service. Few examples:
1) I just ran a valuation analysis for a SaaS business. The answer was 3x revenue, 12x EBITDA for 35% IRR with <70% Equity, $30% Seller financing and small earn-out. EBITDA was projected to grow 7x in 5 years. I have tools to do such analysis interactively in minutes.
2) Few years back a seller of a profitable (good margin) SaaS company wanted a very high multiple (does not matter revenue or EBITDA). Her expectation was slightly over market multiple. I sliced the market data into =<10% margin and >10% margin. The data clearly showed that high margin businesses sold for a lot lower multiple than low margin businesses. The difference was dramatic. She engaged another I-banker who promised high multiple. Business did not sell. 10 years later owner sold it for low value,
3) 10+ years ago had a Saas business in NY in cloud tech. Very low EBITDA margin ($5 M sales, $50 k EBITDA). We sold it to a buyer who did not need my client's $3 M R&D team.

My main point is ...Blind reliance on multiples risks BK.

It's good to look at both with internal valuing. Here is a good rule of thumb to follow:

If the ARR growth rate is higher than the EBITDA margin, use a revenue multiple. ARR multiples become justified when the high growth rate returns a value on your multiple.

If the EBITDA margin is higher than the ARR growth rate, use an EBITDA multiple.