I have a problem with "Market Value Assessment"
graysofte,
I have a problem with the "Market Value Asssessment" outlined in your post. The term "Net income" (for the purposes of assessment) should be more defined. Interest on debt, owner's salary, etc. can have a huge impact on the bottom line. Also, I don't see the rationale for using the profit figure from the last three months. Most businesses are cyclical and the annual profit would give a more realistic picture of the operation.
I also find that paying for the number of visitors, who generated the profit for which you would are also be paying, is unrealistic. I note that, in the example shown, 8660 visitors generated $4533 profit. That is, the average profit per visitor is $0.52. The method of assessment shown calculates the worth of each visitor at $0.16.
If I were trying to assess the value of a website, I would look at the book value of the business, the cost to create a similar business from scratch and, most importantly to me, the return on investment.
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