Quote:
Originally Posted by celandina
Not really... Its business major 101
Similar to bond or real estate valuations, the value of a business can be expressed as the present value of expected future earnings over the years. Use any calculator to determine the value of your business today based on discounted future cash flows with consideration to "excess compensation" paid to owners, level of risk, and possible adjustments for small size or lack of marketability.
So if you can show that your business has a solid base then:
Now, I have applied the standard growth of the years expectations, but reduced it by 10% per annum for lack of marketability.... There are many calculators, but all will come with the same or similar results...
Of course there are many caveats...most of these formulas presume that the business has its own assets and longevity over the years. In our ( web owners) case that we own an exlusive content... So..if you just recycling other content, you are completely correct not worth a rats ass.  
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there is business school theory and then there is real life... in real life, business is worth whatever someone is willing to pay for it, and since no one will ever pay 10x for an adult business, it's clearly not worth 10x like you are claiming...
