Work out revenue multiple valuation instantly with clear inputs, formula shown and shareable results.
Revenue multiples are shorthand for a discounted cash flow that nobody wants to build. Because the multiple a market pays depends mainly on growth and net revenue retention, this calculator adjusts a base multiple up or down from a 40% growth, 100% retention reference point.
Base valuation
Value = ARR x Revenue multiple
Quality adjustment
Adjustment = 1 + (Growth% - 40)/400 + (NRR% - 100)/400, bounded 0.5x to 2x
Indicative valuation heuristic only. Multiples are market-dependent and the quality adjustment is a simplification. Not investment advice or a valuation opinion.
Because recurring revenue is predictable. Services and one-off revenue are usually valued at a much lower multiple, if at all.
It moves with the market — public SaaS has ranged from about 4x to over 20x forward revenue in a decade. Anchor on current comparables, not a past peak.