Transparent, Data-Driven Methodology
CounterX valuation methodology is built on real market data, proprietary algorithms, and complete transparency.
We believe founders and buyers deserve to understand exactly how valuations and Trust Scores are calculated. Our methodology is based on 326+ real transactions from our marketplace, continuously updated algorithms, and industry best practices.
SaaS Valuation Methodology
Three proven methods combined for accurate valuations
1. Revenue Multiple Method
The most common approach multiplies Annual Recurring Revenue (ARR) by a multiple typically ranging from 3-6x for SaaS businesses. The multiple varies based on:
- Growth rate (higher growth = higher multiple)
- Churn rate (lower churn = higher multiple)
- Profitability and cash flow
- Market conditions and sector trends
- Comparable recent transactions
2. Growth-Adjusted Multiple
Faster-growing businesses command premium multiples. Our model adjusts the base multiple based on:
- Month-over-month growth rate (10%+ MoM = premium)
- Consistency of growth (sustained vs. volatile)
- Growth efficiency (CAC payback period)
- Expansion revenue and upsell potential
Example: A SaaS growing 20% MoM might see 5-7x ARR, while slower growth (5% MoM) might be 2-4x ARR.
3. Market Comparables Analysis
We compare each business to similar SaaS companies that recently sold on CounterX and in the broader market. Factors considered include:
- Niche and industry sector
- MRR range and revenue model (B2B vs B2C)
- Growth trajectory and stage
- Business model similarities
- Recent transaction dates (weights more recent deals higher)
Key Valuation Factors
Revenue Metrics
- • Monthly Recurring Revenue (MRR)
- • Annual Recurring Revenue (ARR)
- • Revenue growth rate
- • Revenue consistency
Customer Metrics
- • Churn rate (monthly/annual)
- • Customer Acquisition Cost (CAC)
- • Lifetime Value (LTV)
- • LTV:CAC ratio
Business Health
- • Profitability and margins
- • Cash flow and runway
- • Market position
- • Competitive advantages
Risk Factors
- • Customer concentration
- • Dependency risks
- • Market competition
- • Technology stack risks
Trust Score Methodology
8 verification pillars, 0-100 score, complete transparency
Trust Score is calculated from 8 weighted verification pillars. Each pillar is scored independently, and the weighted average produces the final Trust Score (0-100) with a confidence level.
Financial (25%)
Revenue, MRR, churn, CAC, LTV verification
Asset (20%)
Domain, SaaS platform, store, app verification
Identity (15%)
Owner identity and KYC verification
Traffic (15%)
Analytics, traffic sources, engagement
Legal (10%)
Compliance, terms, contracts
Reputation (10%)
Reviews, historical signals, brand
Operational (3%)
Continuity, infrastructure, processes
Fraud (2%)
Manipulation signals, anomaly detection
Data Sources & Updates
Transaction Database
Our valuation models are built on 326+ verified transactions from the CounterX marketplace. Each transaction includes:
- Verified MRR and revenue data
- Growth metrics and trends
- Churn rates and retention data
- Final sale prices and multiples
- Business type and sector information
Methodology Updates
We review and update our methodology quarterly based on new transaction data and market trends. Major methodology changes are documented and communicated transparently. Our database is continuously updated as new deals close on the platform.
Last updated: January 26, 2026
Frequently Asked Questions
How does CounterX calculate SaaS business valuations?
CounterX uses multiple valuation methods: revenue multiples (ARR × multiple), growth-adjusted multiples (faster growth commands higher multiples), and market comparables analysis. Our proprietary model analyzes 326+ real transactions, considering MRR, growth rate, churn, CAC, LTV, profitability, and sector benchmarks to recommend appropriate multiples.
What data sources does CounterX use for valuations?
We analyze 326+ real transactions from our marketplace and industry data. Each transaction includes verified MRR, growth metrics, churn rates, and final sale prices. We continuously update our database and adjust our models based on market trends and new transaction data.
How is the Trust Score calculated?
Trust Score (0-100) is calculated from 8 verification pillars with different weights: Financial (25%), Asset (20%), Identity (15%), Traffic (15%), Legal (10%), Reputation (10%), Operational (3%), and Fraud (2%). Each pillar is scored independently, and the weighted average produces the final Trust Score with a confidence level.
How often is the valuation methodology updated?
We review and update our methodology quarterly based on new transaction data and market trends. Major methodology changes are documented and communicated. Our database of 326+ transactions is continuously updated as new deals close on the platform.
What makes CounterX valuation different from competitors?
CounterX uses real transaction data from 326+ verified deals on our own platform, proprietary algorithms that consider 15+ factors, complete transparency in methodology, and automated verification through our Due Diligence API. We focus on data-driven accuracy rather than generic industry averages.