There are levels. Obviously the best test is 3 backups on 3 different continents (in the future one of the backups will be on Mars), with regular tests that each site can restore from scratch.
Even the minimum level: an untested backup to the same disk is better than what most people have. That untested backup is there and protects against accidental file deletion - which will eventually become a test for most people. If the disk fails it is also something to work with. If you tell a disaster recovery service that there is a backup they can use that redundancy to their advantage: odds are physical damage isn't to both the backup and the read data and they only have to recover one. Even if the damage is to both there is something to work with.
As we move up the ladder there is more and more. An untested backup has data - give me the team a few years and we can recover it. We might have to recreate the restore from scratch, but there is something.
Remember though, the farther down the ladder you are the more expensive recovery can be. If you have tested backups on 3 continents recovery only costs a couple hours downtime - an actuary can put an exact dollar cost on this. If the price is too high you can invest in redundancy on the live system. If you have an untested backup it might be years before your team can recover it: millions of dollars in labor to recover the data and sever years of no/reduced business while they recover it. (hint: the company will go out of business because they cannot afford to recover the data)