Are you paying too much for B2B SaaS growth? Use the “Growth-Adjusted Enterprise Value (EV) / Annual Recurring Revenue (ARR) Ratio”

Summary The G-A EV / ARR Ratio (“Ratio”) normalises growth for Business to Business (B2B) Software as a Service (SaaS) businesses. It asks the question – for each percentage of ARR growth, how much am I paying? Formula = EV / ARR Multiple divided by (Year on Year (YoY) ARR Growth*100) [Example Company: 9 /...

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