How to Value a Rapid Growth Business in 2026: Forward EBITDA and Rule of 40
Valuing a rapid growth business in 2026 shifts from TTM EBITDA to forward EBITDA methodology and Rule of 40 framing (growth rate plus EBITDA margin). 30%+ growth with Rule of 40 above 40 commands premium multiples: 10-15x forward EBITDA for services, 8-15x ARR for SaaS. 15-30% growth with positive EBITDA lands 5-8x forward EBITDA. Sub-15% […]