EV/Revenue, EV/EBITDA, and DCF: which valuation model fits SaaS
Selecting the appropriate valuation model for a SaaS company depends heavily on its stage, profitability, and growth trajectory. While multiples offer quick benchmarks, a robust DCF remains essential for capturing long-term value creation.
Why SaaS ARR multiples are diverging from EBITDA multiples in 2026
The market is increasingly valuing SaaS companies based on future growth potential, leading to a widening gap between ARR and EBITDA multiples, particularly impacting capital allocation and deal structuring.