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Valuation question. SaaS business

A topic related to SAAS or APPs

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Hi Fastlaners,
I'm trying to help a colleague value a business.
It is a cloud based software for professional users (e.g., CPA, FP, Lawyers, etc.). They have approximately 5000 subscribers (monthly users).
The revenue is approximately 1 million per year. Their EBITA is approximately 500k per year.
Somewhere I have heard that 10x multiple is the going rate for valuation in SaaS software.
At 10x revenue is the valuation $10 million? Is 10x the correct multiple. Is valuation typically calculated on Revenue or EBITA?

Thanks
 
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