Actually for a typical software company, a churn rate that high probably wouldn’t attract an ARR multiple. More likely an EBITDA multiple. EV/ARR is probably used for companies that exhibit high growth, has $10m+ sales (more established/prove ) and quite low churn rates (<5%). I’m no expert on software though, barely a beginner.
When in doubt, stick to profit multiples!
Ann: Investor Presentation, page-10
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