A website is worth what a buyer will pay for its future cash flow, adjusted for risk. In practice that means a multiple of monthly profit — but the multiple, and the numbers you feed it, are where deals are won or lost.
The core formula
Most content and small e-commerce sites sell for a multiple of average monthly net profit (not revenue). A common range is roughly 24–40× monthly profit, i.e. about 2–3.5× annual profit — higher for stable, diversified sites, lower for fragile ones. See valuation multiples explained.
Use a real profit baseline
Average the trailing 6–12 months of net profit, and add back one-off costs and owner-specific expenses (a "seller's discretionary earnings" view). One great month isn't the baseline; a trend is.
What raises the multiple
- Diversified, defensible traffic (not one algorithm or one referrer)
- Owned audience: email list, direct/returning visitors
- Clean, multiple monetization streams
- Documented systems and low owner time
- Long, stable history
What lowers it
- Traffic from a single source (one search algo, one social platform)
- Declining trend or recent traffic drop
- One ad network / one affiliate program = all revenue
- Thin, AI-spun, or at-risk content
- Poor records you can't verify
Verify before you trust the number
A valuation is only as good as its inputs. Confirm traffic in analytics, revenue in the actual ad/affiliate/payment dashboards, and check for penalties. That's due diligence — never skip it.
FAQ
Is a website valued on revenue or profit?
Profit, not revenue. The standard method is a multiple of average monthly net profit (often 24–40×), adjusted for traffic quality and risk.
What multiple do websites sell for?
Roughly 24–40× monthly profit (about 2–3.5× annual). Stable, diversified sites with owned audiences fetch the high end; single-source-traffic sites the low end.