Understanding AI business valuations

Most AI businesses on BusellAI trade between 12x and 24x monthly revenue. Why the range?

The five drivers

1. Owner hours / day. Hands-off beats active by 1.5–2x multiple.
2. Client concentration. Top-1 client > 30% of revenue is a 20% discount.
3. Churn. Under 4%/mo is a premium. Above 8%/mo is a discount.
4. Transfer cleanliness. Signed runbooks and credentials raise the multiple.
5. Growth rate. 10%+ MoM for 3 months adds 10–20%.

Worked example

A $1,800 MRR business with ~12m/day of owner time, 4% churn, diverse clients, and flat growth lands around 19x = $34K. With 15%+ MoM growth, it trades closer to 23x.