As an online business owner you may have at one stage wondered How Much Is Your Online Business Worth? Valuing a business can be tricky, but as an experienced Exit Advisor, I understand the importance of accurately assessing the worth of your online business.
With years of expertise in selling a wide range of online ventures, including Amazon FBA businesses, affiliate sites, content sites, and e-commerce businesses, I can guide you through the valuation process and help you maximize the value of your business.
The Standard Formula For Calculating How Much Your Online Business Is Worth
In general, the valuation method follows a simple formula: [6-12 Months’ Average Net Profit] x Multiple (Typically 20–50+). This approach ensures a fair and realistic assessment of your business’s value.
SDE vs. EBITDA: Which is Right for You?
Determining the present value of your business requires considering different valuation methods.
For smaller businesses, we often use the Seller Discretionary Earnings (SDE) method, which calculates net earnings before tax, subtracts necessary operating expenses, and adds back discretionary earnings.
For larger businesses with complex structures, the EBITDA model (earnings before interest, tax, depreciation, and amortization) is more suitable.
Why an Online Business Valuation Matters
Even if you’re not planning to sell, obtaining a professional valuation can provide valuable insights to improve your business’s performance.
Discovering the true worth of your online business can be an eye-opener, and it opens up opportunities for investment, travel, or other ventures. Many online business owners are surprised by the sellable asset they possess, making a valuation a worthwhile endeavor.
A Simple & Easy To Use Tool To Get An Online Business Valuation Estimate
This user-friendly valuation tool takes just a minute or two to complete. It asks for essential information about your business, such as creation date, average monthly revenue and expenses, unique visitors, email subscribers, social media followers, and more.
With this information, we can instantly provide you with an accurate valuation.
Data & Experience Over Feelings
You may have strong feelings about how much your online business is worth. After all, you’ve spent years and a lot of resources building it to where it is today.
However, the way you feel about your business vs what the market is actually willing to pay for your business can be two very different things.
With this Online Business Valuation Tool, you can trust that the valuations are backed by extensive marketplace experience.
Discover the true value of your online business today. Fill out the valuation tool and gain valuable insights to shape your future success.