Estimate a SaaS valuation as ARR times a revenue multiple you choose, with a low to high range and a Rule of 40 check on growth and margin.
Valuation is ARR times the multiple. Multiples swing with growth, retention, margins, market and interest rates, so treat the result as a sketch for a conversation, not a price.
The Rule of 40 adds yearly growth and profit margin; 40 or more is often read as a healthy balance.
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