Only high-growth, high-margin businesses can get 7x+ earnings.
Creating a sufficient level of growth to garner 7x valuation is very tough to do bootstrapped.
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EDIT: The only reason anyone gets a 10x etc valuation is because they're doubling+ year-over-year, and very likely they'll be 3x bigger in 18 months.
So basically, that's a 3-4x valuation...of your probable revenue in a year and a half.
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...
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.
It would also help to know the TAM(total market area). How big is the remote KVM market? That gives you an idea on how many devices it's possible to sell in a given year.
Looks like the device sells for about $400.