      Kellblog · 2015-04-19
      · 4064d
    

SaaS Valuation Drivers: The Critical Role of Growth Rate and CAC Efficiency

SaaS company valuations are strongly correlated with growth rate and customer acquisition cost (CAC) efficiency. Research from RBC demonstrates that companies growing faster while maintaining lower CAC ratios command higher valuations, suggesting an inherent correlation between growth efficiency and valuation multiples.

1 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

CAC Payback Ratio

50%

example

50% means $0.50 ARR growth per $1 of S&M spend, or $2 spend per $1 new ARR