What acquisition price, sources and uses, and sponsor economics create a credible transaction case?
Model profile
Tech Company Valuation
Value a listed software or internet company the way technology analysts do. Forecast recurring revenue from annual recurring revenue (ARR) - new customers, expansion and churn - and the margins of a scaling business, then value the shares by DCF, EV / revenue and EV / gross profit comparables and precedents, with retention, sales efficiency, the Rule of 40 and stock-based compensation dilution measured on the way.
Decision scope
Questions this model helps you examine
How do operating projections, cash generation, and debt paydown support the proposed capital structure?
How do exit timing, exit multiples, and downside cases affect sponsor returns and value per share?
Model capabilities
What this model includes
The profile below is generated from the same catalogue and workspace definitions used by the application.
- Unit economics (lifetime value against acquisition cost, payback), cohort retention and the share count after compensation
- An offer price build with a control-basis fairness view, a valuation report, and an audit trail with reviewer sign-off
- An ARR roll-forward: new customers, expansion and churn, with net ARR growth fading to the long-term rate
- Recurring revenue recognised ratably, beside services or other segments forecast at their own growth
- Net revenue retention, customer acquisition cost payback and the Rule of 40, year by year
- Stock-based compensation shown both as a cost and added back, with the annual dilution it implies
- EV / revenue, EV / gross profit and EV / ARR multiples, calendarised peers in any currency
- Margin targets for the operating leverage of a scaling business
- Every Company Valuation method: three statements, a normalised DCF, WACC, comparables, precedents, scenarios and Monte Carlo
- An implied value summary, football field and buy, hold or sell indication, with 18 model checks
Build the case
Inputs and workspaces
- DocumentsUpload up to ten annual reports, filings, presentations and lists; review what was read, then apply it.
- Valuation settingsCompany and market data, DCF, cost of capital, comparables and the football field.
- Forecast assumptionsScenario, growth taper, costs, working capital, assets, leases and financing.
- Reported financialsRevenue segments, reported years and option tranches.
- Peers and transactionsComparable companies, sum-of-the-parts businesses and precedent transactions.
- Market evidenceBroker targets, share price history, addressable markets and the macro outlook.
- Audit trail and sign-offEvery saved change to the case, and the preparer and reviewer sign-off of each run.
Review the result
Outputs and analysis
- Average implied value per shareMethods in the average
- Upside to the average implied valueAgainst the share price
- DCF value per shareSelected terminal method
- WACCUsed in the DCF
- Closing ARR, next yearAnnual recurring revenue
- Net revenue retentionExpansion less churn
- Rule of 40Growth plus free cash flow margin
- Customer acquisition cost paybackMonths
- 13 additional metrics in the workspace
- Financial statements and free cash flowDetailed schedules
- Valuation, comparables and market evidenceDetailed schedules
Designed for review
Who this model is for
- Private-equity sponsors and corporate development teams
- Investment and financial analysts
- Transaction advisers
- Investment committees and lenders
Governed evidence
The review trail stays with the result.
Each completed calculation preserves the model version, saved inputs, reporting-currency snapshot, immutable run, and result fingerprint used for its reports.
- Version-controlled calculation logic
- Saved assumptions and scenarios
- Immutable calculation runs
- Reporting context preserved in exports
Ready to explore the case?