Valuation and Multiple Estimator
06 / VALUATION AND MULTIPLE

Valuation and multiple estimator

Fourteen inputs, one multiple, and a full audit trail in terms of ARR showing exactly what each factor did to it.

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IMPORTANT, PLEASE READ BEFORE USING THIS TOOL
This is a rough estimate. It is not a valuation, an appraisal, or an offer.
What this tool actually does
It applies published market benchmarks to numbers that you type in. It performs arithmetic on your own unverified inputs and nothing more. It cannot see your contracts, your cohort data, your books, your code, your cap table, your customer agreements or your buyer pool, and it does not know your jurisdiction, your tax position or your deal terms.
Why real outcomes differ, often by a lot
Actual transactions are decided in diligence: quality of earnings, revenue recognition, contract assignability, retention cohorts, IP ownership, key person risk, working capital, escrow, earn outs and who happens to be at the table. Real deals routinely close well above or well below a model like this one, and some do not close at all.
What it is not
Nothing on this page is a valuation opinion, an appraisal, a fairness opinion, a solvency opinion, accounting, tax, legal or investment advice, a recommendation, or an offer or solicitation to buy or sell any business or security. Using this page creates no client, advisory or fiduciary relationship with SaaSLaunch.
How to use it responsibly
Treat the output as a directional sanity check and a way to see which lever moves your number most. Do not price a sale, a raise, a buyout, a share issue or a partner exit off this page. Before you act on any figure here, get advice from a qualified M and A advisor, an accountant and a lawyer who have reviewed your actual financials.
Provided as is and without warranty of any kind, express or implied, including accuracy, completeness or fitness for a particular purpose. To the maximum extent permitted by law, SaaSLaunch accepts no liability for any decision made or action taken in reliance on this tool. Benchmarks reflect 2026 lower middle market SaaS data and change over time. Nothing you enter is stored, transmitted or seen by us.
YOUR INPUTS
Every field is explained underneath it
$120,000
Monthly recurring revenue, only the amount that is contracted and live.
2.0%
Revenue that cancels each month. Often the single biggest downward pull on your multiple.
4.0%
Month over month growth. 4 percent a month is roughly 60 percent a year, and 8 percent a month is roughly 150 percent.
Under a year means buyers have no cohort data to trust.
White label and no-code models cap out around 3 to 4 times ARR.
Buyers price technical debt as cash to be spent directly after the deal.
Too many competitors tells a buyer growth will be expensive.
15%
Roughly what percent of your addressable market already pays you. Owning the dominant share of a small niche is a very strong valuation driver.
A small TAM caps the growth story a buyer builds into their model.
80%
Revenue left after the cost of serving customers. Below 70 percent and buyers think you are a services business.
$400,000
Actual dollars of profit generated over the last 12 months, with your own above-market pay added back in. Enter a negative number if you burn cash.
The reason for 70 to 80 percent of the whole multiple.
If the owner is the go to market, the buyer inherits a heavy risk.
10%
Allows roughly 20 percent buyers apply a concentration haircut.
ESTIMATED ENTERPRISE VALUE
$0M
$0M to $0M on 0.00x ARR
ARR
$0M
Multiple
0.00x
Biggest drag
None
MULTIPLE BUILD UP, IN TERMS OF ARR
Base multiple
Private market baseline for this ARR bracket
4.00x
Adjusted multiple
Base plus all adjustments sum
0.00x
Effective multiple
Enterprise Value divided by Annualized Revenue
0.00x
Earnings based floor
A strict bottom floor PE might pay for cash flow
$0M
If you fixed the biggest drag
New enterprise value without the worst negative impact
$0M
THE VERDICT
Clean profile, scale is the goal
No major red flags. Focus on top line revenue growth and expanding market share.
HOW THIS IS CALCULATED
  • Every factor is a multiple turns up or down based on current SaaS trends. Example: 2% net churn is standard, 4% costs you a turn, 0% adds a half turn.
  • Base multiple is derived from current mid-market M&A data. Under $1M ARR is 3x to 4.5x, $1M to $5M is 4x to 6x, and scales up as premium buyers enter.
  • Growth, gross margin, acquisition engine and owner dependency carry the heaviest weights, because they dictate whether a buyer is purchasing a business or a job.
  • Growth and profitability are scored separately. An unprofitable business burning heavily will take a hit on the profitability metric.
  • Earnings floor is a standard private equity fallback: EBITDA times 4 or 5. If growth slows and cash flow is low, valuation collapses to this floor.

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Estimates only, for general information. Outputs depend entirely on the accuracy of your inputs. Benchmarks reflect 2026 lower middle market SaaS data. Nothing here is financial, tax, legal or investment advice, and no advisory relationship is created by using this page.