Estimate what a SaaS business might be worth using annual recurring revenue and a revenue multiple, with a low to high range you can sanity check.
Your committed recurring revenue this month. ARR is this figure multiplied by 12.
This is your assumption, not a quoted price. UK private SaaS multiples have ranged widely. Slower growth tends toward 3 to 5x, strong growth toward 8 to 12x. Adjust to your situation.
Used only to nudge the suggested multiple up or down. It does not override the multiple you set above.
Revenue lost from existing customers each year. Lower churn supports a higher multiple.
How this works
ARR is monthly recurring revenue times 12. The headline valuation is ARR multiplied by the revenue multiple you enter. At £100,000 MRR and a 6x multiple, that is £1.2m ARR for a £7.2m valuation.
The suggested range builds a soft band around your multiple, then shifts it for growth and churn. Faster growth and lower churn push the suggested multiple higher, slower growth and higher churn pull it lower. This is guidance to pressure test your own number, not a market quote.
Assumptions: revenue is genuinely recurring, MRR is a fair run rate rather than a one-off spike, and you are valuing a software business where revenue multiples are the common shorthand. Real valuations also weigh gross margin, net revenue retention, the rule of 40, market size and the buyer. Treat this as a starting point for a conversation.