Hi. Looking for a primer/resources on SaaS valuation, modeling, etc. Looking to understand key metrics, why the industry uses EV/revenue multiples, what drives valuations, etc. Appreciate any resources or any explanations to the above questions. Thanks.
| +172 | Evercore > Goldman and I don’t think it’s particularly close anymore | 63 | 2h |
| +156 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 17 | 18h |
| +125 | I am a drunk MD AMA | 40 | 1d |
| +87 | UBS Offer Day | 30 | 1d |
| +75 | Santander IB? | 10 | 3d |
| +71 | I hate Wells Fargo | 19 | 20h |
| +51 | No return offer - feeling like a failure is an understatement | 20 | 15h |
| +50 | Think Twice before Recruiting for HOUSTON IB!! | 18 | 3h |
| +48 | How cooked am I as an incoming WF IB SA 2027? | 17 | 12h |
| +46 | WF Return offers | 28 | 2d |
Career Resources
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.
A lot of the times you use revenue because the company doesn’t even have ebitda yet. Although more commonly you use ARR, not necessarily sales. For the firm I’m interning at, we don’t even look at profitability, all that matters is recurring revenue, because the companies are so scalable and the underlying product is so profitable (>70% gross margins) that we can reorganize the cost structure and raise prices (due to lack of commoditization) post acquisition to make the business generate a bunch of cash flow
ARR as in annual recurring revenue or run rate? Kinda confused with when to use which.
annual recurring revenue
It's annual run rate if you're talking about revenue for a period less than a year, usually 3 months or 1 month, that has been annualized. It’s annual recurring revenue if you are doing this same calculation but you’re only using revenue that is recurring (subscription based)
Modi commodi mollitia sit dolores placeat eius illo. Maiores quidem aliquam suscipit tempora molestias culpa excepturi quia. Earum dolor doloremque aspernatur tempora aliquam quia earum. Perferendis dolor autem possimus dolorem. Qui delectus ut sunt alias ipsum.
Placeat quam incidunt nihil rem. Maiores neque et qui voluptas saepe. Illum dolor nihil placeat illo quisquam laudantium sunt est.
Porro quo enim reiciendis consectetur neque ullam rerum. Et nihil nemo in sed delectus. In animi occaecati ut qui sunt. Maxime earum vero praesentium cum rerum nemo nesciunt.
Porro qui veritatis odio autem. Aut reiciendis blanditiis tempora enim. Repellendus illo aperiam quae tempora reprehenderit architecto hic provident. Est nulla iusto culpa qui.
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...