Hey, do any one of you know any reference for valuing an E-commerce firm???...... it's sort of urgent.. I thank you in advance..

Question

anonymous · Answer

hope this points you in the right direction. http://www.practicalecommerce.com/articles/439-Setting-A-Value-For-An-Ecommerce-Business http://www.ukbusinessforums.co.uk/forums

anonymous · Answer

Hi
It's very dependent on the type of firm, type of sector, and how much you can get away with.
Start with _Comparables_. Were recent comparable firms transactions valued as a multiple of Sales ? multiple of subscribers (eyeballs)?
Some businesses are essentially option-type bets so traditional methods (with sensible valuations) fall short. (such as NPV, or EBIT multiples, or P/E ratio).
Can you tell a bit more about the [i]type[/i] of e-commerce business? is it a start-up, high growth? what sort of user volumes, what kind of sales revenues, any profits yet?

anonymous · Answer

Hi, Edward.. apologies for my delayed response.. The E-commerce firm is a Start-up firm, high growth opportunities, user volume= roughly 8 million, revenue- 100 Millions (USD), no profit yet..