Which SaaS metrics matter most when estimating company valuation?

[SaaSClue]

We're interested in understanding how founders, investors, and operators approach SaaS valuation today.
While ARR remains an important metric, many valuation models now also consider customer retention, churn rate, growth rate, CAC efficiency, LTV, and profitability.
At SaaSClue, we've noticed that the weight assigned to these metrics can vary significantly depending on company stage and growth profile.
Which metrics do you consider most important when evaluating an early-stage SaaS business, and why?

 

[Graybeard]

TAM then market penetration considering time of operation. Current cash burn or quarterly profit.
The rest is just projecting growth or decline possibility.

 

[Qunoliv]

Interesting discussion. As someone running multiple accounts across different platforms, I end up using a handful of SaaS tools daily and I've started paying more attention to how they price their "per profile" or "per seat" models.
Take AdsPower, which I use for browser isolation. Their pricing is straightforward: 2 free profiles forever, and paid plans scale predictably. That matters to me as a user because I can plan my costs. And honestly, as someone who's been burned by tools that jack up prices mid-year, I think predictable unit economics is an underrated sign of a well-run SaaS.
Not a VC here, but if I were looking at early-stage SaaS valuations, I'd dig into how their pricing holds up as customers scale, not just top-line ARR.

 

[poweradspy]

The most important SaaS metrics for estimating company valuation are ARR/MRR growth, Net Revenue Retention (NRR), Customer Acquisition Cost (CAC), Customer Lifetime Value (LTV), churn rate, gross margin, and the LTV ratio. Strong recurring revenue, low churn, efficient customer acquisition, and high customer retention typically have the biggest impact on valuation.

 

[jorge1243]

Honestly, at the early stage I care less about ARR and more about whether customers stick and expand, NRR tells you that. Pair it with growth rate (by cohort, not blended) and you get a real sense of momentum.
CAC and LTV are still useful, but with so little data this early, they swing a lot based on just a few deals, I treat them as signals, not gospel.