How To Calculate My Website Value?

How do you calculate the value of a website differently from a brick and mortar company?

  • Is using a net present value calculation on future (potential) income the rule even for websites?

  • Answer:

    The methods to calculate the value of any business - website or otherwise - are essentially the same.  A discounted cash flow model (which uses the concepts from NPV) is one common method, and can be applied to website businesses and brick and mortar companies alike.  The inputs for margins, SG&A, etc. will likely differ given the different business models, but the framework used to value the businesses is essentially the same.

James Woodland at Quora Visit the source

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