How Valora calculates your valuation
Valora uses a revenue-multiple approach. We start with a multiple typical for your sector, then adjust it for the factors that buyers actually price in. Nothing is hidden — every adjustment is shown as a percentage in your results.
Step one: your sector multiple
Each sector has a baseline multiple of annual revenue, drawn from typical transaction ranges in that market.
| Sector | Base multiple |
|---|---|
| Software / SaaS | 5.5x |
| Marketplace / Platform | 4.2x |
| E-commerce / Retail | 1.8x |
| Fintech / Payments | 4.8x |
| Health / Medtech | 4x |
| Professional Services | 1.4x |
| Manufacturing / Industrial | 1.6x |
| Media / Content | 2.2x |
| Education / Edtech | 3x |
| Other | 2x |
Step two: the eight adjustments
Each factor nudges the multiple up or down. The adjustments are capped so no single answer can distort the result.
Growth rate
Measured against a 10% baseline. Faster growth widens the multiple; flat or declining revenue narrows it.
Gross margin
Centred on 55%. High-margin businesses keep more of every dollar and command a premium.
Company stage
Pre-revenue companies carry more risk than profitable, scaling ones, so the multiple is adjusted accordingly.
Main market
Buyer depth and exit liquidity differ by region, which shifts the multiple up or down.
Recurring revenue
Subscription or contracted income is more predictable, and predictability is what buyers pay for.
Protected IP
Patents, proprietary technology and defensible brands reduce competitive risk.
Team efficiency
Revenue per person signals how well the business converts headcount into income.
Founding team
A multi-founder team is treated as slightly lower execution risk than a single founder.
Step three: the range
The adjusted multiple is applied to your annual revenue to produce a mid-point figure. We then show a range of roughly 18% below and 22% above that mid-point, because no single number is ever the whole truth in a negotiation.
A worked example
A software company with $2M revenue, 60% growth, 75% gross margin, recurring contracts and a two-founder team starts from a 5.5x sector multiple. Growth, margin, recurring revenue and team efficiency push it higher; the market adjustment pulls it back slightly. The result is a mid-point in the region of $16M, with a range of roughly $13M to $20M.
What this is not
Valora gives an indicative range for planning and negotiation. It is not a formal appraisal, and it does not account for debt, working capital, customer concentration or legal structure. For a transaction, pair it with professional advice.