Revenue Multiple

The valuation of a company expressed as a multiple of its revenue — the primary valuation lens for growth-stage software.

Revenue Multiple

The valuation of a company expressed as a multiple of its revenue — the primary valuation lens for growth-stage software.

What Revenue Multiple means

A company valued at $100M with $10M in ARR trades at a 10x revenue multiple. Multiples vary enormously by growth rate, gross margin, and market conditions. In frothy markets, top-decile SaaS has traded above 30x; in tighter markets, 5–8x is typical for solid businesses.

The multiple you get depends more on growth rate than on absolute size — a startup growing 3x year-over-year commands a much higher multiple than one growing 30%.

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•By Alejandro Cremades