An online tool assists in estimating the worth of software-as-a-service businesses. This estimation typically incorporates factors such as recurring revenue, customer churn rate, growth rate, and profitability metrics. A simplified example might involve multiplying annual recurring revenue by a specific multiple based on industry benchmarks.
Accurate business appraisal is crucial for informed decision-making by stakeholders. These tools offer a preliminary assessment, providing a starting point for negotiations in funding rounds, mergers and acquisitions, or internal planning. Historically, valuations relied heavily on manual calculations and expert opinions. The increasing availability of automated tools offers greater accessibility and efficiency, particularly for early-stage businesses.