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How long must you prove earnings to get a decent multiple

Discussion in 'General Business' started by math20, Jul 5, 2006.

  1. #1
    I recently sold a site and got only 2x the monthly earnings and I think it was because the site was brand new so my question is: How long must you prove earnings to get a decent multiple (10x)?
     
    math20, Jul 5, 2006 IP
  2. dct

    dct Finder of cool gadgets

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    #2
    I'd say at least 6 months but it all depends on the site. If I see a site with potential that is only a few months old I'd be prepared to offer 10 months as I'd expect to be able to grow the income further.
     
    dct, Jul 5, 2006 IP
  3. kuepper

    kuepper Peon

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    #3
    Earnings doesn't matter as much as earnings stability. It's just like the stock market - a one-time gain from a tax break or change in accounting doesn't force a re-valuation of the stock price; rather, it is continual earnings growth at a solid pace... the longer the better.
     
    kuepper, Jul 5, 2006 IP