Problems of valuation

Finding a realistic value on an internet company is difficult. The valuation should be no different from that of a well-established company. Predicting future cash flows is one possible way. But internet companies are also, by nature, unpredictable. They can enjoy huge success for a short while and quickly disappear. Internet companies have limited historical data, the growth path is unclear and there are no competitors for benchmarking.

Value of visitors

On average, a website with 30,000 visitors per month provides advertising revenues of about 1,000 USD. The average number of pageviews is 65,000 or 2,17 pages per visitor. The revenue per pageview is 0,015 USD. The revenue of Google is about 0.095 USD while Facebook has a revenue of 0.005 USD.