SaaS Valuation

by an intermediary

11 months ago

Hi all,

I have a SaaS B2B, ARR $800k, has grown 300% in 1 year, limited competition in a niche Market, 80% profit margins. Wondering what would be the valuation on this, was thinking of 8.5x of the ARR. How off am I? Would love to hear your thoughts or references.

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4 comments

searcher from Northwestern University

This valuation methodology in SaaS Capital's "What's Your SaaS Company Worth?" paper might be helpful here. It was recently updated for 2024: https://www.saas-capital.com/research/whats-your-saas-company-worth/

6 months ago | like reply | 0 likes

intermediary

For 8.5X ARR you'd probably have to show more than one YoY high growth - the other question that immediately popped into my mind when I saw the 300% growth (congrats, on that - huge) - is the customer concentration.

Was that one or two big contracts / clients? Or are you onto something and you're signing up customers all over the place.

10 months ago | like reply | 0 likes

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