It depends mostly on growth. 10 P/E is OK if you grow 2 x year as a large company or 4-5 x per year as a smaller company. Not if you're a small company growing

It depends mostly on growth. 10 P/E is OK if you grow 2 x year as a large company or 4-5 x per year as a smaller company. Not if you're a small company growing up to 2 x per year. 10 x earnings means huge growth and potential upside. Also see Tom Tunguz' post on benchmarking SaaS companies from a few days ago: http://tomtunguz.com/benchmarking-exceptional-series-a-companies/ http://tomtunguz.com/benchmarking-exceptional-series-a-compa...