The key financial ratios to value a company depend on the status and funding stage of the business you are trying to evaluate. To value early-stage companies, for example, that have secured seed or Series A funding, you’ll need to perform an in-depth cash flow analysis, assess the company’s financial statements, and look at burn rate, cash runway, and headcount plans. To value a company preparing for an IPO, on the other hand, you’ll want to look more closely at revenue and capital efficiency metrics.
SaaS valuation is a complex process that requires more than one ratio.