need help evaluating the value of an application

8 Feb 2007 - 7:40am
353 reads
diego bauducco
2007

Thanks so much for your answers.

Diego

>
> This really isn't an IxD topic.
>
> That said, valuations are tricky.
>
> The official answer is the valuation is the highest amount of money a
> buyer will pay for it. Of course, you have to figure that out with
> little help from the buyer, since they want to get the best deal.
>
> Often valuations are multiple of something, such as six times
> revenues or twenty times net earnings. Other times, you base the
> valuation on what it would cost to buyer to build it themselves
> (factoring in the cost of the delay while it's under development). If
> there are comparable applications available, the valuation will be
> relative to their value.
>
> Hope that helps. Good luck,
>
> Jared
>
>
>
>

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