You use EBITDA or income multiples to value both widget manufacturers and SAAS companies. Valuations multiples on revenue really only appear for extremely-high

You use EBITDA or income multiples to value both widget manufacturers and SAAS companies. Valuations multiples on revenue really only appear for extremely-high-growth companies (read: startups) which are spending an enormous amount on development and/or sales for future revenues. Those high costs render their EBITDA or income a poor indicator of their current success. (Also, startups tend to have negative income so the earnings would be negative...)