SaaS B2B Valuation Multiples: The Complete Buyer's Guide
A practical guide to SaaS B2B valuation MRR, ARR, NRR, churn, ARR multiples by size and growth rate, Rule of 40, DCF methodology, and red flags that collapse multiples.
## Why SaaS valuation breaks the standard model If you buy a bricks-and-mortar business, the starting point is EBITDA. Apply a 4x to 7x multiple, sanity-check against assets and recent comparables, done. SaaS breaks that workflow entirely, and rightly so. A SaaS company doing EUR 1m in ARR, growing at 40 percent, with 90 percent gross margins and 110 percent net retention, has nothing structurally in common with a distributor doing EUR 10m of revenue at an 8 percent EBITDA margin. The value sits in predictability, compounding and capital efficiency, not in this year's cash. Buyers who apply EB…