Valuation (valorisation)
An estimate of a company’s economic value at a given point in time. The main methods are earnings multiples (EBITDA, ARR for SaaS companies), discounted cash flows and market comparables. A valuation is an opinion, not a guarantee.
In practice
For a growing B2B SaaS, the ARR multiple ranges from 4x to 15x depending on growth rate, churn, gross margin and revenue predictability. In 2025-2026, multiple compression has brought the Series A median to around 6-7x ARR. For a traditional SME, the EBITDA multiple sits between 4x and 8x depending on the sector. Two levers that universally lift valuations: reducing key-person dependency and documenting repeatable processes.