Originally Posted by faxxaff

Many factors are at play. For a service based business without hard assets it would be a fair price based on stable revenue. Let's say a website that brokers ads or sells memberships for years. Of course it would depend on stable history. And I know, cheap bargain hunters will disagree ...

If you have a strongly growing business that made 20k last year and 200k this year, you would have projected earnings of 2 Million for next year. Then a price of 6 Million would be more appropriate.

If hard assets like real estate and patents are included it would increase the number.

Anyhow, it all depends to how good your business is and how much it is worth to others and not based on numbers, only.