Estimate an indicative SaaS company valuation from annual recurring revenue and a selected ARR multiple, then bridge enterprise value to equity value using cash and debt.
Use ARR, cash and debt from a consistent valuation date. The selected multiple is an assumption, not a market quote.
This is a scenario estimate, not an appraisal. The selected ARR multiple can change with market conditions and company-specific factors such as growth, retention, revenue quality, profitability and risk. Test a reasonable range rather than treating the default multiple as a universal benchmark.
Enterprise value is the ARR-based operating-value scenario. The simplified equity estimate then adds cash and subtracts interest-bearing debt. Real transactions can require additional bridge items, so use the result as a transparent planning model rather than a final transaction price.
SaaS valuation in this SolveIndex model starts with normalized ARR and a user-selected ARR multiple. The calculator deliberately does not choose a market multiple for you; it makes the assumption explicit so a low, base and high scenario can be reproduced.
The core calculation is Enterprise Value = ARR × Selected ARR Multiple; Equity Value = Enterprise Value + Cash − Debt; ARR as % of Enterprise Value = ARR / Enterprise Value × 100. Use recurring ARR rather than total revenue, and keep cash and debt aligned to the valuation date.
For planning, hold ARR and the capital structure constant while testing several supportable multiples, then test a second case with updated ARR, cash or debt. This separates operating-value sensitivity from the enterprise-to-equity bridge.
Data definitions matter. Document whether ARR represents active subscriptions, annualized recurring contracts or another internal policy, and record the source and date of the market evidence used for the selected multiple.
This calculator is an educational planning tool. It does not replace accounting, valuation, investment, tax or legal advice. For board reporting, fundraising, acquisitions or audited financial statements, reconcile the inputs to the company source systems and apply the organization reporting policy consistently.
Read the matching guide for definitions, formula context, worked examples, reporting boundaries and common mistakes.
Disclaimer: This calculator provides estimates for planning and educational purposes only. Results depend on the assumptions and definitions entered and should not be treated as accounting, financial, legal, tax, valuation or investment advice. Validate material decisions with qualified professionals and your source systems.