The 100x ARR Multiple

most investors used forward ARR multiples to value companies, but recently, the 100x multiple seems to be a benchmark for SaaS companies raising rounds.

Here are the estimated ARR multiples for public SaaS companies.

First, the range is similar: 2 to about 100.
Second, the correlation between the two metrics and revenue growth is identical at about 36%.
Third, there’s a power law shape to both data sets.

the data suggests a company commanding 100x ARR is supported by the market