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by tobltobs 4044 days ago
This 3x yearly earnings is mentioned quite often. But I can't believe anybody is selling for this. Maybe for 5x if you are in need of money. And in times of zero interest rates this 3x thing sounds even more unbelievable.
2 comments

Well software isn't like a lot of businesses. A plumbing supply company will probably be just as successful in 3 years as it is now, but a software company might be worthless. Three years is a long time in software.
3x revenue, not 3x earnings. Revenue and earnings are two different beasts.
In a one man software company, there's often not a great of outgoings.