Ask HN: Whats with the insane valuation of websites these days?

1 pointakudha1 comment

I was looking at a listing, 100$ yearly (yes, yearly) revenue and the asking price is 50K. Another site has $20 revenue and the asking price is 8k. And so on.

Is this normal? I remember seeing multiples of 3 years profit. These listings look insane

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Well, it depends on a lot of factors. Are the domains long established .com or do they dovetail with emerging trends in the market? Do they have high engagement despite low revenue? Lots of eyeballs being poorly monetized by one party doesn't mean another would extract the same value.

The valuation of a website, like any property, isn't going to be purely about the revenue its earning currently but about speculation about what could be made by interested buyers in the future, no?

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