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A newsletter about SAAS called CloudedJudgement sent this in January: > SaaS businesses are valued on a multiple of their revenue - in most cases the projected
by bklyn11201 6y ago
A newsletter about SAAS called CloudedJudgement sent this in January:
> SaaS businesses are valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. In the buckets below I consider high growth >30% projected NTM growth, mid growth 15%-30% and low growth <15%
So if DO is mid growth, you could use 17x as the EV / NTM multiple. So if 2021 revenue will be 320mm + 25% = 397mm NTM * 17x = 6749mm EV.
Total debt is 263mm so best (rough) guess at equity market cap is 6749mm - 263mm debt + 100mm cash