Valuation Fundamentals · Episode 1 · Pillar

How much is my company worth? A founder's guide to company valuation

Watch: a short introduction to valuation multiples.
Not a guess. Not a number from a headline. The real price a buyer would pay, and how to find it with four simple lenses.
By Crispa · 8 min read · Updated June 2026
The short answer: Your company is worth what a buyer will actually pay for it. The most reliable way to estimate that is to value it across four lenses, revenue growth, gross margin, EBITDA margin and the Rule of 40, which together produce a defensible valuation range, not a single number. Below, we explain each of these business valuation methods and work through a real example.

Why one number is almost always the wrong number

Most founders think they know what their company is worth. They've seen a headline, "SaaS companies trade at 3–10x revenue", and applied it to themselves with quiet optimism. Almost always, it's the wrong number. Not because founders are bad at math, but because they're using one data point from the wrong context and treating it as a verdict. When a buyer or investor runs their own analysis, and they will, the gap becomes a credibility problem.

There's a better way to calculate company value, and it takes four lenses, not one. The output isn't a figure plucked from an average; it's a range you can defend.

Valuation multiples explained: a shortcut, not an answer

A valuation multiple is your company's value expressed as a number times a metric, for example a revenue multiple, like 5x revenue, or an EBITDA multiple, like 8x EBITDA. Each one packs three things into a single figure: your growth rate, your risk profile and your cash flow. Used well, a multiple is a powerful shorthand for where your business stands.

Think of a doctor making a diagnosis. A single reading, your temperature, tells them something, but no good doctor stops there. They weigh several signs together, because it is how the symptoms fit that reveals the full picture. Valuation multiples work the same way: Each one is a useful signal, and the real insight comes from reading them together rather than leaning on any single number.

The four lenses: business valuation methods that hold up

Four metrics drive the vast majority of how software and service businesses are valued, and each gives you its own implied multiple. Read together, the way a doctor weighs several signs at once, they turn a rough estimate into a picture you can stand behind. Run all four, the four-lenses valuation method, and you get a defensible range instead of one fragile number.

All figures show median EV/TTM revenue by cohort, from the SEG 2026 Annual SaaS Report (4Q25 medians).

Lens 1, Revenue growth rate

Growth is the single biggest driver of valuation multiples; buyers pay for your future, not your past.

EV/Revenue2.4x≤10%5.8x10–20%12.7x20–30%8.5x>30%Grouped by revenue growth rate

Lens 2, Gross margin

Gross margin is how much of each DKK of sales you keep after direct costs. It tells you how good your revenue is.

EV/Revenue3.3x≤60%4.1x60–70%5.1x70–80%6.4x>80%Grouped by gross margin

Lens 3, EBITDA margin

EBITDA is a simple measure of cash profitability, earnings before interest, tax, depreciation and amortisation. Multiples stay flat up to about 20% margin, then jump: a step function, not a slope.

EV/Revenue4.6xNegative4.4x0–10%4.4x10–20%6.3x>20%Grouped by EBITDA margin

Lens 4, The Rule of 40

The Rule of 40 says your growth rate plus your profit margin should clear 40. We use a weighted version that leans toward growth, because that is what the market pays for most.

Rule of 40
Revenue growth  +  EBITDA margin
Weighted Rule of 40
43 · Revenue growth  +  23 · EBITDA margin
EV/Revenue1.6x≤10%3.4x10–20%4.2x20–30%6.9x30–40%9.5x>40%Grouped by the Weighted Rule of 40 score

Worked example: how to calculate company value for a DKK 5M software company

Take a SaaS company with the profile below, and run all four lenses:

Company profile

DKK 5M
Revenue
35%
Revenue growth
82%
Gross margin
−15%
EBITDA margin
37%
Weighted Rule of 40
Valuationmultiple4.6xby EBITDAmargin6.4xby grossmargin6.9xby Ruleof 408.5xby revenuegrowthEnterprisevalueat DKK 5M revenueDKK 23Mby EBITDAmarginDKK 32Mby grossmarginDKK 34.5Mby Ruleof 40DKK 42.5Mby revenuegrowth

Real value range: DKK 23M – DKK 42.5M, not the DKK 50M a "10x" headline promises.

The spread between the lenses is itself the insight: strong growth and excellent unit economics, with profitability as the drag. Fix the weakest lens and the whole range moves up.

Why a valuation range beats a single number

"Quote DKK 50M and you lose credibility immediately. Quote DKK 23–42M, explain the lenses, and you sound like someone who knows exactly what they're talking about."

A range signals you've done the work, and it gives you room to negotiate, you can move within it with reasons, rather than defending one fragile figure under pressure. That's why, when founders ask whether to give investors a single number or a range, the answer is almost always a range.

CrispaValuation Range Calculator

What is your SaaS company worth?

Enter your company's metrics to see the implied enterprise value range, built from the EV/Revenue multiples in the SEG 2026 Annual SaaS Report.

Your company
Weighted Rule of 4037%
Below 40%
0%50%100%+
Implied Enterprise Value
DKK110–266M
Implied EV/Revenue multiple range 4.4x – 10.6x
Midpoint 7.5x  |  DKK 188M
What drives the multipleMultipleImplied EV
Public SaaS median 5.3x    SaaS M&A median ~4.0x
Source: Software Equity Group, 2026 Annual SaaS Report (4Q25).

Frequently asked questions

What is a valuation multiple?
A valuation multiple expresses a company's value as a number times a financial metric, for example a revenue multiple, like 5x revenue, or an EBITDA multiple, like 8x EBITDA. It's a shorthand that bundles growth, risk and cash flow into one figure.
How do investors value a company?
Investors estimate what a buyer would pay, usually by applying multiples drawn from comparable companies across several metrics, growth, margin and profitability, and triangulating to a range rather than a single number.
Should I give investors a range or a single number?
A range. It shows you understand the drivers of your value, it's more credible to sophisticated buyers, and it gives you room to negotiate with reasons.
What are the four lenses of valuation?
Revenue growth rate, gross margin, EBITDA margin and the Rule of 40. Each implies its own multiple; together they produce a defensible valuation range.

Sources

  • Software Equity Group, 2026 Annual SaaS Report (2025 data). Public-SaaS valuation multiples and the SEG SaaS Index benchmarks cited throughout.
  • Crispa valuation analysis. The four-lens method and the worked DKK 23M to 42.5M range used across this series.

Know your number before you need it.

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