In our opinion the best method to value a website or internet business is the comparable transactions method taking in consideration the Precedent Transactions of the digital business.
With the comparable transactions method, we will look for comparable metrics, usually multiples of earnings or revenue.
It is important to identify the key valuation parameter for each deal. That is, were the companies in those transactions valued as a multiple of EBIT, EBITDA.
The main prerequisite for a useful and accurate precedent transactions analysis is access to recent transaction data and trends.
Source – TGS Portugal