How much would you pay for a website that averaged $1K in revenue per month?

[olson1981]

On the condition that it was remain steady for the next 2/3 years probably around the $20k mark.

[wonderpunter]

Which world? NASDAQ, S&P, many other stock exchanges.

http://www.nasdaq.com/symbol/ndaq/pe-ratio
http://en.wikipedia.org/wiki/Price%E...earnings_ratio

What are you talking about? Price to earnings of a listed company on the nasdaq has nothing to do with selling a general business.. PE is a measure of price paid to earnings made "Twitter is a great example" it has nothing to do with the real business world, If that's the case then I Am already a millionaire many times over... but "That's not the real business world" Your business is sold based on what people are willing to pay and 80% of the time people always over value what they have thinking it's worth more than it really is.

And then there is cost, if it costs $800 to produce 1000 is this viable? what about risk? what about market trend? is it volatile? rule of thumb back in the old days for a brick and mortar business would be based on 3 year profits "not turn over" and also assets if there were any, and also commitements "Contracts,, salaries, finance etc"

[blackriver]

So stock listed companies are not real world businesses? I'm not talking only about nasdaq and big companies, P/E > 10 is common on all stock exchanges around the world, even for fairly small companies with net profit (so after tax, salaries, operating cost, etc.) of $1M per year.

P/E is a method of valuation. PE shows how many years you will need to brak even assuming profits will not change. It is based on how much people are willing to pay to get part of business. Real world example: company last year net profit was $600K and the market (it is what people are actually willing to pay) value it at $7M so P/E = 11.

What about trend? If a company is growing fast, it will probably have higher P/E ratio. If it is operating on volatile market then P/E will be probably lower.

[wonderpunter]

So stock listed companies are not real world businesses? I'm not talking only about nasdaq and big companies, P/E > 10 is common on all stock exchanges around the world, even for fairly small companies with net profit (so after tax, salaries, operating cost, etc.) of $1M per year.

P/E is a method of valuation. PE shows how many years you will need to brak even assuming profits will not change. It is based on how much people are willing to pay to get part of business. Real world example: company last year net profit was $600K and the market (it is what people are actually willing to pay) value it at $7M so P/E = 11.

What about trend? If a company is growing fast, it will probably have higher P/E ratio. If it is operating on volatile market then P/E will be probably lower.

I know exactly what a P/E is, I just can't believe someone is using it as a basis to valuate a online Gambling website over a 10 year period lol, I should hire you to take one of my companies public, I thought I had some way to go.. but by your methods it seems like I am all ready to cash out and retire.

[blackriver]

it seems like I am all ready to cash out and retire.

No, you are not, first you need to learn how to read with understanding. I have never said that online gambling website should be valued P/E > 10. I said that in real world businesses are valued this way and proved it to you.

I just can't believe someone is using it as a basis to valuate a online Gambling website over a 10 year period lol

Nobody is using P/E as a basis to valuate small online gambling website, But in fact, online gambling companies/operators are valued this way.

Unibet P/E = 12.17
https://www.google.com/finance?cid=788990705850500

Betsson P/E = 20.30
https://www.google.com/finance?q=STO...HIWawgOoroG4BQ

32Red P/E = 16.02
https://www.google.com/finance?q=LON...EuoprDA-HBgNgC

[wonderpunter]

No, you are not, first you need to learn how to read with understanding. I have never said that online gambling website should be valued P/E > 10. I said that in real world businesses are valued this way and proved it to you.


Nobody is using P/E as a basis to valuate small online gambling website, But in fact, online gambling companies/operators are valued this way.

Unibet P/E = 12.17
https://www.google.com/finance?cid=788990705850500

Betsson P/E = 20.30
https://www.google.com/finance?q=STO...HIWawgOoroG4BQ

32Red P/E = 16.02
https://www.google.com/finance?q=LON...EuoprDA-HBgNgC

That is not real World business.. real world is realistic, What the average "General Population" does.. your comparison is like comparing the a small shop to a large corporation like Heinz "or kraft" because they are both in the beans business, you cannot use the same basis to buy a one man tiny store to a multinational public traded company with thousands of share holders, perhaps you should read some real world stories.. yes of course there are exceptions.. A better answer would be "In the World of trading stocks this is how we value a business" if you feel that's they way every business is valued in the real world then I wish you great success.

[PROFRBcom]

"Real world businesses" traded on the stock market absolutely do NOT
compare to gaming websites. The stock market is the game with the most
suckers... ever. PE ratios are ludicrous these days and while people can
buy them and make money, they will revert to the mean at some point and
many millions of suckers will be left holding the bag. Any purchasing a
volatile online gaming website and basing their valuation on stock
market equivalents is going to get screwed... hard IMHO

[DraftJam]

Depends on a niche imo.