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Four-dimension valuation: my method

DEV Community·Michel Faure·about 1 month ago
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Hook After burying the "lines × day-rate with AI discount" method for my 91,000-line ERP, I found myself facing a harder question than the first one. What do I replace it with? I spent two days testing every single-dimension model available. None held. Here is the graveyard of my attempts, and what eventually worked: four dimensions, summed, not weighted, with a SQL deduplication rule that took me a week to find. If you have 30 seconds. No single metric holds for valuing an internal ERP: ARR, SaaS replacement cost alone, usage value alone — all of them flatten reality. This article proposes a method of four summed dimensions (SaaS equivalent, usage, data, strategic), with the TypeScript consolidation function, the SQL deduplication query between dimensions, and the weekly cron that produces a defensible snapshot. Useful if you have to justify the value of software without a market price. The graveyard of single-dimension models First attempt, ARR .…

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