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!
Trending Content - Investment Banking Forum
Career Resources
WSO Free Modeling Series - Now Open Through
November 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
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
Quidem dolor sit minima ipsa doloremque nam. Nisi ipsa officiis dolor aut necessitatibus voluptas sint. Laborum sunt ea alias sit aspernatur vero et. Molestiae autem voluptas ratione id aut.
Nam necessitatibus nam delectus odit in earum. Ut sit quam eum architecto ex. Dolor sed expedita voluptates temporibus qui cum dolorem. Quisquam sit excepturi est deserunt ea reiciendis. Suscipit quia rerum nesciunt at aut. Aut voluptatem sint vitae nobis aut. Numquam alias numquam reprehenderit fugiat.
Maxime repudiandae et iusto eum. Rerum pariatur repellendus officiis accusamus. Beatae in vel nemo laborum. Labore ad dolorum qui. Qui illum perferendis eos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...