Complete SaaS Valuation Guide: How to Value Your Business in 2025

SaaS business valuation is a science that combines financial analysis, operational metrics, and market trends. In this comprehensive guide, you'll learn the main valuation methods used by professional investors and buyers. The most common method is the recurring revenue multiple (ARR or MRR), which ranges from 3x to 10x depending on factors such as growth rate, profit margin, churn rate, and customer base quality. SaaS businesses with growth above 50% per year, churn below 5% monthly, and positive EBITDA margin can achieve multiples above 8x. Other critical factors include revenue diversification, customer lifetime value (LTV), customer acquisition cost (CAC), and brand strength. This guide details each metric, offers practical calculators, and presents real case studies from global market transactions.