What is the ARR Multiple in B2B SaaS?

Sebastián Calderón
ILLUMINATION
Published in
6 min readFeb 7, 2024

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Image courtesy of the author.

What Is The ARR Multiple?

The ARR Multiple is one of the most important metrics for every SaaS company aiming to go public. Tech investors use it to calculate a SaaS company’s approximate value quickly.

Since SaaS companies sell intangible software as their primary service, it can be difficult to appraise them like a company selling a physical product…

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Sebastián Calderón
ILLUMINATION

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