Business Valuation — AI estimate of what your business is worth

Knowing approximately what your business is worth helps in fundraising conversations, acquisition discussions, equity decisions, and long-term planning. CooVex generates a valuation estimate using your connected revenue data, growth rate, market comparables, and industry-standard valuation multiples.

Important note: This is an AI-generated estimate for planning purposes. For a formal valuation (M&A, legal, or investment), engage a certified business valuator or investment bank.

Valuation methods used

Revenue multiple (for SaaS / subscription businesses)

The most common SaaS valuation method: Annual Recurring Revenue (ARR) multiplied by a multiple that reflects your growth rate, churn, and market conditions. Current SaaS multiples for bootstrapped businesses range from 3-5x ARR; for fast-growing VC-backed companies, 10-20x ARR.

EBITDA multiple (for profitable businesses)

Earnings before interest, taxes, depreciation, and amortization multiplied by an industry multiple. Requires you to enter your EBITDA or gross profit data. Typical multiples: 3-8x EBITDA depending on industry and growth rate.

Discounted Cash Flow (DCF)

Projects future cash flows based on your current revenue, growth rate, and churn, then discounts them to present value. Requires 3-year revenue projections — CooVex uses the Forecasting data automatically.

Running a valuation

1. Go to AI Tools → Business Valuation
2. Confirm the pre-filled data from your CooVex account (MRR, ARR, growth rate)
3. Enter any additional data that CooVex does not have automatically: EBITDA, total employees, equity structure
4. Select your industry (affects which comparable multiples are used)
5. Click Calculate Valuation

The result shows a valuation range (low, mid, high) across each method, with an explanation of which method is most appropriate for your business and why.

Improving your valuation

Below the valuation estimate, CooVex lists the three factors that have the most impact on your number — and what you can do to improve them. Common examples:

• “Your monthly churn of 4% significantly reduces your ARR multiple. Reducing churn to 2% would increase valuation by an estimated 40%.”
• “Your MoM growth rate of 8% is strong. Maintaining or improving this is the highest-leverage action for valuation.”
• “Adding documented processes and reducing key-person dependency would improve acquirer confidence and push the multiple higher.”

See also: Revenue Tracking | Forecasting | Business Plan