Digital Holding Co. & SaaS Rule of 40 Metric Engine

Underwrite B2B SaaS and digital subscription businesses. Calculate CAC Payback, LTV:CAC, Net Revenue Retention (NRR), and Rule of 40 health.

SaaS Financial Parameters

Annual Recurring Revenue (ARR $)

Year-over-Year ARR Growth Rate (%)

Free Cash Flow / EBITDA Margin (%)

Average Customer Acquisition Cost (CAC $)

Average Revenue Per Account (ARPU $ / mo)

Gross Margin (%)

RULE OF 40: 50% (ELITE)

CAC Payback Duration

9.8 Months

Estimated SaaS Enterprise Value

$4,875,000

Holding Co. Valuation Multiple

6.5x ARR Multiple

High growth (35%) + strong cash generation (15% FCF) commands top-quartile M&A pricing.