# SaaS valuation rule-of-thumb test: methodology

Snapshot queried September 28, 2026. Publisher: BigIdeasDB. Aggregate results only: no listing identifiers, URLs, headlines or seller details.

## Population
BigIdeasDB tracks 823 acquire.com listings (all flagged on sale, last seen September 20, 2026). The SaaS universe is listings in the "SaaS startup" category with a positive asking price, trailing-twelve-month (TTM) revenue and TTM profit: 370 listings. Multiples are recomputed from asking price and TTM figures, not taken from stored multiple fields. Run-rate ARR is last month's revenue x 12 (369 listings have it).

## Rule tests
Each rule produces an estimate per listing. "Within 25%" means |estimate - ask| / ask <= 0.25. "Within 2x" means the estimate is between 0.5x and 2x the ask. "In band" means the actual ask falls inside the rule's stated range (3x-5x ARR, 3x-5x TTM revenue, 3x-4x TTM profit). Point estimates use the band midpoint. The margin-band model multiplies TTM revenue by the median revenue multiple of the listing's profit-margin band (under 20%, 20-50%, 50-80%, 80%+); it is fitted and tested on the same data, so its accuracy is optimistic.

## Factors
Median revenue multiple (ask / TTM revenue) by profit margin band, growth (run-rate ARR / TTM revenue: shrinking < 0.8, fast >= 1.5), team size and the seller-reported churn trend. Cells under 30 listings are directional.

## Limits
These are asking prices, not closing prices. Financials are seller-reported. Some listings may already be sold or withdrawn. Growth is a one-month proxy. The churn fields are seller-entered and noisy. No causal claim is made.

## Source page
https://bigideasdb.com/how-to-value-a-saas-company#original-research