How to Value a Technology & Software Business
What technology & software businesses sell for in 2026, what drives value in the sector, and how to estimate your own — in about ten seconds.
Public EV/EBITDA
16.0×
Typical private range
4.8–11.2×
EV/Sales
5.0×
Public multiples: Damodaran, NYU Stern, January 2026. Private range applies SellSide's size discount. Indicative only.
What drives value in technology & software
Recurring revenue, low churn, high gross margins and defensible IP. Predictable ARR earns the highest multiples in the market.
The headline multiples above are public-company averages. A private business almost always sells for less — smaller companies carry more risk, are harder to sell quickly, and are often more dependent on the owner. That's why the typical private range sits well below the public figure, with the smallest businesses at the bottom of it.
Worked example
A technology & software business earning $500,000 of EBITDA, valued at the middle of the private range (~8.0×), would be worth around $4,000,000 — before adjusting for growth, margins and country.
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