September 19, 2008

Valuation Metrics for Local Web Sites to Help Gauge What’s a Web Site Worth?

Research and Markets ( has announced the addition of Borrell Associates Inc.'s new report "What's A Web Site Worth? Valuation Metrics For Local Web Sites" to their offering.

The oldest newspaper, radio, TV and "" Web sites turned 14 years old this year. In that short time span they have evolved from being interesting experiments to become their parent organizations' centre of attention and financial saviours. Some of them now generate millions in revenue and significant profits, and have high potential for continued growth - begging the question of just how much these local Web sites might be worth.

BIA Financial Network has teamed up with Borrell Associates to analyze local Web site revenues, expenses and growth trends in this report, "What's A Web Site Worth? Valuation Metrics For Local Web Sites". What emerged was another strong indication of the fundamental changes taking place in the media industry: local Web sites generate important value for their owners, especially for owners that have positioned their sites for growth in key high-demand advertising categories such as e-mail, streaming video and paid search. Some of these local Web sites are worth between $300 million and $450 million, and even small sites are seeing values in the low millions of dollars.

Not all local sites are created equal. Newspaper-owned Web sites tend to have the highest revenues, but their valuations are constrained because their growth rates have slowed and they are selling mainly banners and listings - relatively slow-growth advertising categories. TV, radio and local pure-play sites tend to have higher multiples associated with their valuations because they are better positioned for future growth. This is a Borrell Associates report

Key Topics Covered:

-- Growth and Decline in Local Interactive Ad Sales

-- The Income Approach to Discounted Cash Flow Analysis

-- Average Revenues, Expenses and Cash Flows for Web Sites

-- Revenue and Expense Projections for Web Sites

-- Web Site Values

-- Comparable Web Site Valuations - Publicly Traded Companies

-- Value Magnifers for Web Sites

-- Summary and Conclusions

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