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SaaS Valuations: How to Value a SaaS Business in 2022

FE International

Crucially, any owner salary/dividends can be added back to the profit number, too. Businesses that are 2 years old are the preferred entry point, and at 3+ years they start to receive more of a premium multiple. Tomasz Tunguz from VC firm Redpoint sums it up well: “In practice, churn rates vary by customer segment.

EBITDA 105