It really depends on a bunch of factors, if you've capped out your total addressable market, and/or there's no fat to cut out of the business (i.e. potential is limited) lots of competitors etc, then a low valuation is reasonable.
But if you're growing, have big upside, and can be a rollup or been operating quite inefficiently 4x would be ridiculously low.
> But if you're growing, have big upside, and can be a rollup or been operating quite inefficiently 4x would be ridiculously low.
That's the dream, but the number of startups that check all the boxes to fall into this category is extremely small.
There's a lot of data supporting 2-4X for small SaaS companies. You'd have to be growing at an extreme rate year over year over year for 4X to be considered "ridiculously low".
But if you're growing, have big upside, and can be a rollup or been operating quite inefficiently 4x would be ridiculously low.