How to value a mobile application before its sale: metrics, multiples and pitfalls

A mobile application is not a SaaS, and its valuation metrics are not the same. A founder who applies the B2B SaaS reading framework (ARR multiple, NRR) to a consumer mobile app systematically ends up with a poorly positioned valuation. This guide details the metrics specific to mobile applications and the multiples observed in Europe in 2026.

Mobile-specific metrics

• DAU (Daily Active Users) / MAU (Monthly Active Users): the DAU/MAU ratio measures daily engagement. A ratio > 40% is considered excellent (Facebook is ~66%, Snapchat ~60%). Below 15%, the app is perceived as a "one-off utility", limited valuation.
• D1/D7/D30 retention: measures the % of users who return 1, 7 and 30 days after install. 2025 sector benchmarks (AppsFlyer State of App Marketing): median D1 = 26%, D7 = 11%, D30 = 6%. An app with D30 > 15% is in the top quartile.
• ARPU (Average Revenue Per User): average revenue per monthly active user. Key for freemium and in-app purchase apps. To be compared with CAC (acquisition cost) to calculate payback period.
• LTV (Lifetime Value): for mobile apps, LTV = ARPU × average user lifetime. Lifetime varies strongly by sector: gaming (18–24 months), fitness (12–18 months), finance (36–60 months).

B2C vs B2B multiples: the differences

Consumer mobile applications are valued differently depending on the monetisation model. Subscription-first apps have the highest multiples because they are structurally similar to SaaS. Freemium/in-app purchase apps have intermediate multiples. Ad-based model apps have the lowest multiples due to CPM volatility. Here are the ranges observed in the European market in 2025–2026:

The impact of Apple and Google stores on margins

The store commission (30% for Apple App Store and Google Play on subscriptions in the first year, 15% from the second year) directly impacts gross margins and therefore multiples. An acquirer calculates multiples on net store commission revenues, not on gross revenues. An asset with €500K annual gross revenue on App Store actually shows ~€380K net revenue (assuming a subscription mix with tenure > 1 year). This distinction must be presented clearly in the information memorandum.

In-app purchase vs subscription: which values better?

Recurring subscriptions (weekly, monthly, annual) are structurally valued better than one-off in-app purchases (IAP). Reason: recurrence creates predictability, which is the main driver of multiples. An asset generating 80% of revenues via annual subscriptions with low churn will be valued 2–3x more than an asset generating the same revenues via non-recurring IAPs. The optimal pre-sale strategy: migrate the most active users to a subscription and document the conversion rate over 6 months.

Case study: niche app, 50K MAU, valuation

Data: note management app for independent lawyers. 50,000 MAU, DAU/MAU = 35%, D30 retention = 18%, monthly ARPU = €4.50 (subscription), monthly churn = 2.1%. ARR = 50,000 × 0.7 (freemium-to-paid conversion rate) × €4.50 × 12 = ~€1.89M. Estimated NRR = 96% (limited expansion in this segment). Net App Store commission revenue (15%, users > 1 year) = €1.61M. Expected multiple: 4–6x net ARR = €6.4M–€9.6M. Premium factors: high D30 retention (+), DAU/MAU > 30% (+), niche B2B segment (+). Discount factor: 2.1% monthly churn = 22.6% annual, above B2B SaaS benchmarks (–).