Industry Hub

SaaS Business Valuation Resources

Calculators, guides, and exit-prep playbooks tailored to SaaS businesses.

What Drives SaaS Valuations

SaaS businesses typically trade at 3× – 9× trailing EBITDA (median 5.5×) across the $1M - $25M ARR revenue range. Those multiples are not fixed — they shift materially based on how the business is structured, how dependent it is on the owner, and how visible future cash flows are to a buyer. The resources below walk through the specific levers that expand or compress your number.

Market note: Vertical SaaS in regulated industries trades higher than horizontal SaaS. Multiples compress fast when growth slows below 20% YoY.

Multiple expanders

  • Net revenue retention >110%
  • Gross margin >75%
  • <5% monthly churn
  • ARR > $2M with rule-of-40 above 40

Multiple compressors

  • Top customer concentration >25%
  • Owner-led sales >50% of revenue
  • Tech debt or legacy stack

XIT Matters calculates your valuation using FCFF (intrinsic value), FCFE (equity value), and EV/EBITDA (market comps) — then blends them weighted for your perspective as an owner. See the full methodology.