What Is My SaaS Company Worth in 2026?

Your SaaS company is worth what a buyer will pay for it on the day you decide to sell.

That sounds obvious. But most founders are working with the wrong benchmark.

If you raised venture capital between 2019 and 2022, you probably have a valuation in your head based on the multiple from that round. That number is not what a buyer will pay you today.

Here is what is actually happening in the 2026 SaaS M&A market.

---

The 2026 Market Data

Baker Tilly published their H1 2026 Tech M&A Update in August 2026. The headline numbers:

• Median EV/revenue multiple: 3.4x -- down from 6.6x in H2 2025, down from 16.1x at the 2021 peak
• H1 2026 global software M&A deal value: Record high -- the most activity ever recorded in a six-month period
• Q2 2026 SaaS M&A: 698 closed deals, up 9.6% year-over-year (Software Equity Group)
• Vertical SaaS accounted for 54% of all Q2 2026 SaaS M&A -- up from 46% in Q2 2025

What this means in plain terms: more deals are closing than ever before, at lower multiples than the prior five years. The buyers are active. The era of 10x ARR multiples is not.

---

The Median vs Average Problem

The data people cite most often is misleading.

When you read that "SaaS companies sell for 6x to 10x ARR," that figure typically comes from public market data or the top quartile of VC-backed exits. It does not describe the deal most founders will actually do.

For lower-middle-market SaaS (under $50M ARR) in 2026:

• Median multiple: 2x to 4.5x ARR (aligns with Baker Tilly's 3.4x broad-market median)
• Top quartile: 5x to 7x ARR
• Top decile: 7x to 9x ARR

The average is pulled up by a small number of premium transactions. The median is where most deals happen.

---

The Four Variables That Actually Drive Your Number

1. Are you growing or shrinking?

Growth rate is the single biggest driver of the gap between median and premium multiples.

A SaaS business at $5M ARR growing 40% year-over-year is worth materially more than one at $10M ARR growing 5%. Buyers are buying future cash flows, not current ones.

2. What is your net dollar retention?

NRR above 110% tells a buyer that existing customers are expanding. That is a fundamentally different risk profile than NRR at 85%, which tells them you are losing ground every month.

• NRR 90% to 100%: baseline
• NRR 100% to 120%: meaningful premium
• NRR 120%+: top tier

3. Are you actually profitable?

In 2021, buyers and investors accepted high burn in exchange for growth. In 2026, they want the Rule of 40 to be at least in positive territory for founder-led businesses.

Rule of 40 = Revenue growth rate + EBITDA margin. Above 40 is strong. Below 20 is a headwind on valuation from financial buyers.

4. What does AI mean for your defensibility?

Buyers in 2026 are running a specific diligence question: can AI replace what this company does?

If the answer is yes within 24 months, they either pass or price in the risk with a lower multiple. If the answer is no because AI is embedded in your product as a core workflow (not a feature), you are in the premium tier.

---

SaaS Valuation by ARR and Growth Rate (2026 Reference Table)

| ARR Band | Growth Rate | Estimated Multiple Range | |---|---|---| | $1M - $5M ARR | Below 20% | 1x - 2.5x ARR | | $1M - $5M ARR | 20% to 50% | 2x - 4x ARR | | $5M - $20M ARR | Below 20% | 2x - 3.5x ARR | | $5M - $20M ARR | 20% to 50% | 3x - 5x ARR | | $5M - $20M ARR | 50%+ | 5x - 8x ARR | | $20M - $50M ARR | Below 20% | 2.5x - 4x ARR | | $20M - $50M ARR | 20% to 40% | 4x - 6x ARR | | $20M - $50M ARR | 40%+ with NRR 110%+ | 6x - 9x ARR |

Baker Tilly H1 2026 broad-market median: 3.4x EV/revenue. These table ranges are directional benchmarks, not guarantees. Buyer type, market conditions, and deal structure all affect final price.

---

A Recent Real-World Anchor

In August 2026, Bending Spoons acquired Airtable for $1.285 billion enterprise value.

Airtable's metrics at exit:

• $480M ARR
• 20% YoY growth
• 90% gross margins
• 170% net dollar retention

Exit multiple: 2.7x ARR

This was not a fire sale. This was a market transaction at current rates. For context, Airtable had raised at an $11 billion valuation in 2021. That is an 80% markdown from peak.

The 2021 to 2026 reset is real, and it is not going back.

---

How to Get a Real Number for Your Business

The ranges above are useful for context. But your actual number depends on specifics a table cannot capture: customer concentration, team depth, contract structure, competitive moat, buyer fit.

There are two ways to find out what your business is worth to real buyers:

Option 1: Ask My Board Get an AI-powered answer based on 200+ episodes of founder exit intelligence and current market data. Useful for a fast directional read. [Ask My Board Now] -> [link]

Option 2: Founder Clarity Session A direct conversation with Jason Kirby, who has been involved in $100M+ in transactions. Honest, specific, no obligation. [Book a Founder Clarity Session] -> [link to calendar]

--- Data sources: Baker Tilly H1 2026 Tech M&A Update (August 2026), Software Equity Group Q2 2026 SaaS Report, PitchBook 2026, SaaS Capital 2026 metrics report, Carta August 2026, announced transactions including Bending Spoons / Airtable (August 2026)