What's your online business worth? A practical valuation guide

June 28, 2026 · 8 min read

"What's it worth?" has a real answer, a range around it, and a final number the market decides. Here's how to get to a defensible figure - and why the last number is often the highest.

The core formula

Most recurring-revenue businesses trade on ARR × a multiple (annual recurring revenue = MRR × 12). For a healthy, transferable SaaS in the small-to-mid range, the multiple typically lands somewhere around 2×–3.5×, with fast growers going higher and shakier businesses lower. E-commerce and content sites more often trade on a profit multiple (a multiple of annual net profit / SDE). So a SaaS doing $5k MRR ≈ $60k ARR might sit around $120k–$210k before adjustments.

That's the starting point, not the answer. The multiple is where the real value is decided.

What pushes your multiple up

• Growth. Consistent month-over-month growth is the single biggest lever. A business growing 10%/mo is worth far more than a flat one at the same revenue.
• Low churn. Sticky revenue that renews is worth more than revenue that leaks.
• Diversified acquisition. Multiple healthy channels beat one fragile one.
• Transferability. If a buyer can take it over without you, it's worth more. Owner-independence is money.
• Clean margins & clean books. Verifiable, high-margin revenue commands a premium.

What pulls it down

• Revenue concentration (one customer or one channel).
• Declining or erratic revenue.
• Heavy founder involvement - you are the business.
• Unverifiable numbers, unclear IP, or a fragile tech stack.

Valuing a pre-revenue project

No revenue means no multiple - so value comes from traction and assets: users, growth curve, the codebase, the domain, the brand, and the audience. Pre-revenue projects are notoriously hard to price with a formula, which is exactly where an auction shines: instead of guessing, you let interested buyers set the number by bidding.

Asking price vs the price the market pays

Your asking price is a signal, not the outcome. Set it too high and serious buyers skip you; too low and you cap your upside. This is the core weakness of negotiating with one buyer - you start at your ask and get talked down.

A time-boxed auction flips it: multiple buyers bid against each other to a deadline, so the price moves up toward what the market will truly pay. For anything where the "right" number is uncertain - pre-revenue, high-growth, or unusual assets - the auction is how you discover it instead of guessing.

Get an accurate number

A rough multiple gets you in the ballpark. A real valuation accounts for your growth, churn, concentration and transferability - and a competitive process is what turns that valuation into the highest firm offer.