It depends mostly on growth. 10 P&#x2F;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&#x27;re a small company growing up to 2 x per year. 10 x earnings means huge growth and potential upside.<p>Also see Tom Tunguz&#x27; post on benchmarking SaaS companies from a few days ago: <a href="http:&#x2F;&#x2F;tomtunguz.com&#x2F;benchmarking-exceptional-series-a-companies&#x2F;" rel="nofollow">http:&#x2F;&#x2F;tomtunguz.com&#x2F;benchmarking-exceptional-series-a-compa...</a>