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How to value a mobile/web app?

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Green Destiny

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Sorry if this is in the wrong section, I wasn't sure where to put it.

I was wondering how you would assess the possible valuation of a web/mobile app i'm working on.

Now I know many of you will think I'm getting a head of myself here and I should concentrate on building the business first before I think of selling it, but I think it would be useful to have a goal in mind of what sort of acquisition price I could aim for depending on various factors.

I've been doing some market research this morning and I've been looking at what sort of market share my nearest competitors have and what kind of share I could take from them.

1 of the biggest companies in my niche, although not a direct competitor, has a current market cap of £3.2 Billion with an operating profit expected to be £104 million. Now this would give a valuation multiple of around 30.

My question is, once I build the business so that it is generating profits, what sort of valuation multiple do you think it could achieve and what would be the factors that would determine it?

Thanks in advance for any replies.
 
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Stop Peeking Through the Keyhole.
Open the Door.

You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.

  • Active Daily: Life-changing content posted dozens of times every day. No dead threads.
  • MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
  • Vetted Network: Connect with founders scaling to 7 and 8 figures.
  • Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."
— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."
— User Richard Peck

"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?

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