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Comment on Intrinsic Value of a SaaS Business: A 20 Year DCFparent

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Turns out, low churn and high margin companies are worth a ton! Especially with low interest rates and a public equities market that shouldn't return more than 4% real over the next few decades. Not a lot of other places to put your capital.

What margins qualify as "high?" I have a SaaS offering I'm working on, and I was going to charge as a multiple of my compute and network costs. Is 85.7% "high" for SaaS? Or is that meh?

85.7% is very high, that'd be a great gross margin (revenues - variable costs, such as compute/network costs).

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