January 30, 2026
Revenue Multiples vs. EBITDA: How SaaS and MSP Companies are Really Valued
SaaS and MSP companies are valued differently because buyers underwrite different “engines” of value: SaaS is typically priced on ARR/revenue multiples when growth and retention are the main story, while MSPs are usually priced on Adjusted EBITDA multiples because predictable cash flow and service delivery margins drive returns. As SaaS matures (slower growth, stronger profitability), it often shifts toward EBITDA-based valuation, but MSPs rarely command true SaaS-style revenue multiples unless they’ve built highly recurring, productized revenue with exceptional margins and low concentration.
