3 {{ upvoteCount | shortNum }}
3 {{ upvoteCount | shortNum }}

How to calculate the value of a web shop?

by loginname
2 replies
I wonder how to calculate the value of a web shop. Last time I checked it was annual sales x 3 (3 years), but doubt that is correct in 2016

is it maybe annual profit margin x 3?

Have web shop with thousands of customers, and consider to sell it for the correct price
#calculate #shop #web
  • Profile picture of the author E. Brian Rose
    People value businesses at different X factors, depending on what suits them. 2.5 - 3x of gross revenues is a pretty common valuation for businesses, however, I have seen some online businesses get valuated from 6 to 10X. And then there are some that get valuated lower.

    It's nearly impossible to know what a potential buyer will valuate your company at. In the end, it's all about what someone is willing to give you.
    Signature

    Founder of JVZoo. All around good guy :)

    {{ DiscussionBoard.errors[10506064].message }}
  • Profile picture of the author bluejeans
    If you were to take your site to Flippa, you would have a lot of people trying to purchase at 12x net or lower (which can feel insulting if you have built something long term that continues to do well in natural search).
    Signature
    Your One-On-One Website Coach and Consultant Will Help You Every Step Along the Way...Never Feel Alone Again Getting Online
    {{ DiscussionBoard.errors[10506070].message }}

Trending Topics