How do you value a software company?
Have an interview coming up and don't know how to approach this, any help would be greatly appreciated!
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When valuing early stage high growth companies, you’re betting on the future cash flows.
So I would look at things like market share growth over the near term, user or subscription count and stickiness of users.
It depends what type of software company. If SaaS it’s largely dependent on churn rate and then a recurring revenue multiple is given
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