# SaaS Valuation: How Investors Value Software Companies

DevFeed: [SaaS Valuation: How Investors Value Software Companies](<https://devfeed.tech/articles/saas-valuation-how-investors-value-software-companies-10338.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/saas-valuation-multiples/>)

Author: Ayush Agarwal

Published: 2026-04-15T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [Software](<https://devfeed.tech/topics/software.md>)

Tags: [fundraising](<https://devfeed.tech/tags/fundraising.md>), [growth](<https://devfeed.tech/tags/growth.md>), [investors](<https://devfeed.tech/tags/investors.md>), [metrics](<https://devfeed.tech/tags/metrics.md>), [revenue](<https://devfeed.tech/tags/revenue.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-finance](<https://devfeed.tech/tags/saas-finance.md>), [unit-economics](<https://devfeed.tech/tags/unit-economics.md>), [valuation](<https://devfeed.tech/tags/valuation.md>)

## AI overview

A guide to SaaS valuation using recurring revenue, growth, retention, profitability, and efficiency metrics. It explains revenue multiples, ARR, Net Revenue Retention, and the Rule of 40 as factors investors use when valuing software companies and preparing for fundraising.

## Source excerpt

Understand how SaaS companies are valued using revenue multiples, ARR, Rule of 40, and growth metrics. Learn what drives higher multiples and how to position for fundraising.