App M&A Intelligence Tool
App Valuation
Calculator
Enter the key metrics of any app you're considering acquiring. Our model scores it across six dimensions and gives you a clear Buy, Negotiate, or Pass verdict — backed by real M&A benchmarks.
Enter App Metrics
Fill in as many fields as possible for the most accurate valuation score. All fields use industry benchmarks to fill gaps where data is unavailable.
Valuation Analysis
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Fill in the fields on the left to get your Buy / Negotiate / Pass verdict.
(Revenue Multiple) —
(P/E Ratio) —
(Model-Based) —
(at current profit) —
Score Breakdown
What Good Looks Like
The benchmarks our model uses to score each dimension of your app acquisition target.
Revenue Multiple
The asking price divided by annual revenue. Industry standard for app acquisitions is 2–4× ARR for stable apps, up to 6× for fast-growing subscription apps.
✓ Target: 2–4× ARR
P/E Multiple (Profit)
Asking price divided by annual net profit. Most app acquisitions happen at 24–40× monthly profit (2–3.3× annual). Below 24× monthly is excellent value.
✓ Target: 24–36× monthly profit
Day-30 Retention
The share of users still active 30 days after install. Above 15% is average; above 25% is strong. High retention = lower future UA costs and higher LTV.
✓ Target: >15% (strong: >25%)
App Store Rating
Below 4.0 stars significantly hurts conversion rate and search ranking. 4.5+ is ideal. Check for recent rating trends — a falling rating is a red flag.
✓ Target: ≥4.2 stars
Paying User Rate
For freemium apps, 2–5% is typical. Above 5% is strong. For subscription apps, 10–20% trial-to-paid conversion is the benchmark for healthy monetisation.
✓ Target: >3% (freemium), >10% (subs)
Revenue Trend
The direction revenue is moving matters as much as the amount. A declining app requires heavy discounting; growing apps justify premium multiples. Always ask for 24-month MRR data.
✓ Target: Flat or growing (last 12mo)
Acquisition Multiples by Category
What apps typically sell for across categories and business models, based on real marketplace transactions.
| App Type / Category | Typical ARR Multiple | Monthly Profit Multiple | Demand |
|---|---|---|---|
| SaaS / Subscription App | 3× – 6× ARR | 36 – 72× | Very High |
| Health & Fitness (Subscription) | 2.5× – 5× ARR | 30 – 60× | High |
| Productivity / Utility | 2× – 4× ARR | 24 – 48× | High |
| Education / E-learning | 2× – 4× ARR | 24 – 48× | Medium |
| Games (Mid-core, Monetised) | 1.5× – 3× ARR | 18 – 36× | Medium |
| Ad-Supported Apps | 1× – 2.5× ARR | 12 – 30× | Lower |
| Hyper-casual Games | 0.5× – 2× ARR | 6 – 24× | Lower |
| One-Time Purchase Apps | 1.5× – 3× ARR | 18 – 36× | Medium |
Red Flags to Watch For
Things that should make you pause, negotiate hard, or walk away entirely when evaluating an app acquisition.
| Red Flag | Severity | What To Do | |
|---|---|---|---|
| Revenue declining >15% YoY | Critical | Discount price 40–60% or pass. Understand root cause before proceeding. | |
| Rating below 3.5 stars | Critical | Store CVR will be severely impacted. Requires full product overhaul budget. | |
| No access to original dev / source code | Critical | Walk away unless escrow / code verified with trusted third party. | |
| 100% reliant on seller for operations | Warning | Require 6–12 month earnout and transition period in deal terms. | |
| No verifiable analytics access | Warning | Demand read-only access to MMP, store console and revenue data before signing. | |
| Pending App Store policy violations | Warning | Request full violation history and any correspondence with Apple/Google. | |
| Revenue spike just before listing | Warning | Verify last 24 months of MRR. Spikes may indicate paid burst to inflate valuation. | |
| iOS-only with no Android version | Note | Opportunity or limitation depending on category. Factor Android dev cost into offer. | |
| Single-market revenue concentration | Note | Higher geo risk, but also opportunity for expansion. Factor into growth projections. |
Common Questions
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