Website Valuation Estimator

How are Websites Valued?

Unlike physical real estate or traditional brick-and-mortar businesses which are often valued based on Yearly EBITDA, internet businesses are almost exclusively valued using a Monthly Multiple.

The standard formula is:
Valuation = L6M Average Monthly Net Profit × Multiple

L6M = Last 6 Months. Buyers look at a 6-month average to smooth out any seasonal spikes. If your site makes most of its money in Q4, a buyer will average that out with the slower summer months.

Understanding the Multiples

• Content Sites (30x - 40x): Blogs monetized via AdSense, Mediavine, or Amazon Associates. These are highly passive but carry "Google Update Risk."
• eCommerce (25x - 35x): Physical product businesses have lower multiples because the buyer takes on inventory risk and heavy logistics.
• SaaS (40x - 50x+): Software-as-a-Service businesses command the highest multiples because they have recurring revenue (MRR) and very low marginal costs.

The "Death Spiral" of Declining Sites

If your traffic and revenue are declining YoY (Year over Year), your valuation will plummet. Website buyers are investors, not turnaround specialists. A site that used to make $5,000/mo but is now making $3,000/mo is NOT valued at a 35x multiple of $3,000. It is often valued at a 20x or 25x multiple because the buyer is trying to catch a falling knife.