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How much is my website worth?

Discussion in 'General Marketing' started by Tehy, Sep 23, 2007.

  1. Minterest

    Minterest Well-Known Member

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    #21
    Well, here is how a company's market value is estimated.

    Market Value (Market Capitilation) = PE Multiple X Earnings

    Where Earning is your one year profit and PE Multiple is the industry standard.

    PE can be calculated from your site's increase in profit from the past year.

    say your profit increased from 100$ to 150$ so that's 50% increase.

    So your PE is 50.

    Hence your websites value is evaluated as 50 X 1200 = $60000

    But it is applicable only if your website sustain that growth.


    Otherwise you can use a lower PE multiple say your profit increases 10% annually. So that makes 10 X 1200 = 12,000$

    Its your option, and I just demostrated how to evaluate a company. Good Luck!

    How about Adding some reputations to this post???
     
    Minterest, Sep 24, 2007 IP
  2. jon2k6

    jon2k6 Guest

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    #22
    Sites don't work like that. You can't just go on income because with a site monetization is a very fickle thing, it depends on the webmaster, amongst other things.

    You have to take into consideration...

    - Age
    - Content
    - Backlinks (and quality of)
    - General web mention
    - Popularity
    - Exact traffic
    - PR

    and I think income it's currently earning is a very rough guide to what it could earn based on how well a site is currently being monetized. But you have to account for everything. I think the site could go for $4k +
     
    jon2k6, Sep 24, 2007 IP
  3. Minterest

    Minterest Well-Known Member

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    #23
    You can do like this, convert the YEAR to month and then calculate as I said.. that is

    Your Networth = Earnings Per Month X PE Multiple

    For calculating the PE multiple select a suitable number.. find the % increse in number of registered users on a mont by month basis and also calculate the increase in profit on a month by month basis... POST THAT NUMBER HERE We will suggest a PE for you depending upon those numbers.. I guess this helps you a lot to find the true value of your site..

    As this method is the best.... to determine the value of as asset...
     
    Minterest, Sep 24, 2007 IP
  4. mdvaden

    mdvaden Active Member

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    #24
    That's what another arborist told me too.

    Although that link gave me $3367 in value, my URL would be worth more if I sold my business and someone wanted the website.

    At several calls per week, just one call alone opens the door to projects for hundreds or thousands of dollars. One installation can pay for all, or more than $4000.

    Plus the website is making over $1000 a year from Google ads.

    So it has to depend on the nature of site and business. Is it just advertising income, or is it selling a service.
     
    mdvaden, Sep 24, 2007 IP