Micro-SaaS Valuation: How Much Is a SaaS Business Worth?
Determining the fair market value of a micro-SaaS requires blending financial formulas with qualitative operational assessment. Learn how founders and acquirers reach agreement on fair deal multiples.
ARR Multiples vs SDE Multiples
For high-growth SaaS (>50% YoY), Annual Recurring Revenue (ARR) is the primary valuation benchmark, usually ranging from 2.0x to 4.5x ARR.
For steady-state or lifestyle SaaS businesses, Seller Discretionary Earnings (SDE) is more appropriate, typically landing between 2.5x and 3.5x annual net profit.
Are pre-revenue SaaS projects worth anything?
Pre-revenue apps typically trade for asset replacement value ($1,000 to $5,000), covering the development hours and initial code architecture.
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