Implied ARR Multiples
This line chart tracks implied Enterprise Value to ARR multiples for software companies from March 2018 to January 2026, contrasting overall median multiples with the top 10 median. Valuations peaked significantly during the post-ZIRP boom in late 2021 before falling back to more moderate levels.
| Label | Value shown on the chart |
|---|---|
| Pre-ZIRP Median (Mar-17 - Mar-20) Overall | 8.7x |
| Pre-ZIRP Median (Mar-17 - Mar-20) Top 10 | 16.6x |
| Post-ZIRP Boom Median (Jun-20 - Nov-21) Overall | 17.7x |
| Post-ZIRP Boom Median (Jun-20 - Nov-21) Top 10 | 45.3x |
| Current Top 10 - Median | 12.8x |
| Current Median | 3.4x |
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