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You could try to look at some of the often cited terms from public companies and try to see how you compare. For instance, a publicly traded company in your se
by mixmax 18y ago
You could try to look at some of the often cited terms from public companies and try to see how you compare.
For instance, a publicly traded company in your sector might be valued at a p/e ratio of 10 ( p= price, e = earnings). If your yearly earnings are $50.000 then your company would have a valuation of $500.000.
- laut 18y agoApple, a growth company, is at a P/E of about 18. The historical average is about 20. Growth companies (like Apple) were at 30-40+ recently.
- dejb 18y agoRemember that earnings is income minus expenses. So this includes the cost of maintaining the site. If it is a full time job then the buyer would be purchasing a 50K job. Also generally smaller companies go for lesser multiples than larger companies. It really depends on how much time and attention the owner has to put into it. In the case of a publicly traded company that is close to zero for shareholders (unless you own Yahoo). But for a small business you'll have to keep an eye on things even if you do hire a general manager.
- anonymous42 18y agoIt's a one man show at the moment, and I only need 10 minutes a day for administration. There is programming involved, but the app has a lot of features and is bug free, just sometimes I will add an extra feature or two when I'm bored.