Tech & SaaS Business Valuation
Discover what your SaaS or technology business could be worth today
Typical Valuation for a Tech / SaaS Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 5.0-9.0× |
| EBITDA Margin | 25-50% |
Market Overview
SaaS and technology businesses achieve the highest multiples in the UK SME market, typically 5.0-9.0× EBITDA, due to recurring revenue models, scalability, and high growth potential. Businesses with strong ARR (Annual Recurring Revenue), low churn (<5% monthly), and proven product-market fit command premium valuations (7.0-9.0×). Early-stage or high-churn businesses trade at lower multiples (5.0-6.0×). Buyers prioritize MRR stability, customer lifetime value vs acquisition cost, and technical debt assessment.
How to Value a Tech / SaaS Business
The standard methodology for valuing a tech / saas business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For tech / saas businesses, that multiple typically ranges from 5.0-9.0×.
Use our free calculator to get an instant valuation estimate based on your actual revenue and profit figures.
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Company Valuation Calculator provides free, instant business valuations for UK SME owners. If your business generates between £250k and £1M EBITDA, we may be interested in acquiring it directly.