SDE Calculation for SaaS: The Complete Valuation Guide for Sub-$5M Companies
Bootstrapped SaaS founders can’t rely on the revenue multiples they see in tech headlines. Smaller, owner-operated SaaS companies are valued on Seller’s Discretionary Earnings (SDE). This guide explains how to calculate SDE accurately, which add-backs buyers accept, and what multiples sub-$5M SaaS businesses receive today—plus a free SDE valuation calculator.