MightyCreation
Junior Member
- May 15, 2018
- 140
- 10
Is there a service I can use to determine the value of my website?
These kind of services are usually not showing the truth,don't trust themIs there a service I can use to determine the value of my website?
What do you mean by "age for normal website"?Site earnings x12 +- any future earnings + age for normal websites.
Age is an important factor which senior marketers and search engines put much value on. Even a PBN have more value if it`s older.What do you mean by "age for normal website"?
Is it how long the website have existed?
ThanksYou can browse flippa / feinternational / empireflippers and you'll get a general idea of how online sites are valuated.
I tried two of them so far and you're right but I hope can find some that are reliableThese kind of services are usually not showing the truth,don't trust them
MultipleNow that we have 10 years of data, we can see how the average multiple has changed annually.
"Multiple" = a multiple of the business’s profit. We use that multiple to determine the valuation, or list price for the business. We calculate the profit for the business using SDE (Seller’s Discretionary Earnings) using this formula:
SDE = Net Profit + Owner Wages/Benefits,
Or, in other words:
SDE = Total Sales – Cost of Goods Sold – Expenses + Owners Wages/Benefits
What is also discussed and needs explaining is when we say, for example, a “multiple of 2.44x.” What this means is: the amount paid for the business is a value of 2.44 times the profit (SDE).
EXAMPLE: A business that is doing $300,000 in profit per year that sold for 2.44x means the selling price was: $300,000 * 2.44 = $732,000. This works in reverse as well. If a business sold for $723,000 at 2.44x, then (2.44 = $732,000 / 2.4x means the profit was $300,000). Note that the SDE is typically calculated for the trailing twelve months (TTM) of the business.
does anyone have an actual formula??
i dont quite understand the replies above
This is the best way to determinate website value, most of the devs use it!Site earnings x12 +- any future earnings + age for normal websites.