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Rough revenue-multiple valuation

A ballpark value range for a recurring-revenue business.

How it works

Value ≈ yearly recurring revenue × a multiple.
Multiples swing hugely with growth, margins, churn and the market mood — this shows a wide range (3×–10×).
A ballpark for conversation, not a formal valuation.

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Low (3×)

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Your rough multiple

3×

Estimate

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High (10×)

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Valuation basics

Early-stage valuation is a negotiation about price, driven by traction, team, market and competition between investors.

Fundraising basics

Raising money means selling part of your company. Understand the terms before you sign.

[1]
Venture Deals — Brad Feld & Jason Mendelson (2011)
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