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A comment on My Sixth Year as a Bootstrapped Founder. Parent comment

Re:My Sixth Year as a Bootstrapped Founder by rsanek on Friday February 16, 2024 @11:33PM (#39406386)
> Only high-growth, high-margin businesses can get 7x+ earnings

Not really, the S&P 500's P/E multiple has historically been at around 15x and now is somewhere around 30x [0]. And with that, we're talking about large, mature businesses that are not growing super fast -- more like 6-7% annualized, post-inflation [1].

[0] https://www.multpl.com/s-p-500-pe-ratio

[1] https://www.investopedia.com/ask/answers/042415/what-average...

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Re:My Sixth Year as a Bootstrapped Founder by paulddraper on Saturday February 17, 2024 @04:23PM (#39413680)
Sorry, I should have said revenue.

There is a lot confusion in this thread (sorry) over "earnings multiples" vs "revenue multiples."

On HN you will almost always see revenue multiple discussed.

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