SaaS Valuation Model

/ August 26, 2020/ Valuation & Fundraising

How much is your SaaS business worth? The answer is usually "whatever a willing buyer will pay." That answer might be true, but a number is more useful. A valuation model can help determine a ballpark figure.

SaaS Capital has written a white paper about SaaS business valuation, and they've identified the major components that drive value. You can find it here:

What's Your SaaS Company Worth?

We built an Excel valuation model using the information found in the SaaS Capital white paper.

Download Model

 

Using the model, you can get a ballpark estimate for the value of your SaaS business. You can also use it as a benchmark—based on current performance, would your business drive a valuation premium or discount?

Before using the spreadsheet, it's a good idea to read the white paper for context. In addition, the starting valuation multiple for the model comes from the SaaS Capital Index. The index provides current valuation multiples for public SaaS companies. Public multiples are used as the baseline for private valuations, which are discounted due to increased risk and lower liquidity.

The SaaS Capital Index page includes a chart plotting the historical growth of the SaaS Capital Index against the Nasdaq and S&P Indices. From 2013 to mid-2020, SaaS has vastly outperformed the broader stock market.

For more information on SaaS valuation, here are some prior SaaS Capital blog posts:

Private SaaS Company Valuations: Q2 2020 Update 

Private SaaS Company Valuations: 2019 (June 2019)

2018 Growth Benchmarks for Private SaaS Companies (June 2018)

So, What Do You Think My SaaS Company is Worth? (October 2016)

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