acquisitionbeginner
Revenue Multiple
Asking price divided by annual revenue.
What is Revenue Multiple?
A revenue multiple compares purchase price to annualized revenue. A 2x revenue multiple means the asking price equals about two years of current revenue before costs. It is a shortcut, not a full valuation.
In Vibe Coding
In AI startup deals, a high multiple needs stronger proof of retention, margins, model costs, and workflow depth.
Example
A SaaS asking $120,000 with $60,000 ARR is listed at a 2.0x revenue multiple.
Why this matters
This matters because Revenue Multiple appears repeatedly when building, deploying, debugging, or connecting services in vibe coding workflows.
When you'll hit this in practice
You will usually run into Revenue Multiple when working on What Is a Good SaaS Multiple?.