University of Twente Student Theses
Bridging the Gap : An Adaptive Multiples Valuation Framework for the Western European SaaS Market following a Mixed Methods Approach
Dijk, W.M. van (2025) Bridging the Gap : An Adaptive Multiples Valuation Framework for the Western European SaaS Market following a Mixed Methods Approach.
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| Abstract: | This research, part of a master thesis in Business Administration with a focus on Financial Management at the University of Twente, aims to develop a valuation index specifically for Western European SaaS companies. Conducted at 4CEE in Ede, a financial software firm, the study addresses the lack of a regionally tailored SaaS valuation model—unlike in the U.S., where the SaaS Capital Index exists. The core problem identified is the absence of a valuation framework that reflects the unique dynamics of the Western European market. Through a mixed-methods approach, combining qualitative and quantitative research, the study first identified key valuation drivers via expert questionnaires. This was followed by a financial analysis of 28 public SaaS firms across Western Europe from 2015–2024. The model estimates company valuation using ARR and adjusts for private companies via a discount based on an integrated private company discount. Regression analyses helped correct the model based on ARR growth rates. Findings show a growing alignment between U.S. and Western European SaaS valuations, though key market differences remain. While the resulting model provides reasonable valuation estimates, it is not definitive and should be used alongside expert judgment for accurate assessments. |
| Item Type: | Essay (Master) |
| Clients: | 4CEE, Ede, Netherlands |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/106279 |
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