Comments on: Is Sedo Worth $350M? http://domainnamewire.com/2008/01/23/how-much-is-sedo-worth/ News and Views for the Domain Name Industry Sat, 21 Nov 2009 13:25:12 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Andrew http://domainnamewire.com/2008/01/23/how-much-is-sedo-worth/comment-page-1/#comment-138818 Andrew Thu, 24 Jan 2008 02:33:22 +0000 http://domainnamewire.com/2008/01/23/how-much-is-sedo-worth/#comment-138818 Graham, you'd be surprised what domain parking companies are able to keep. Some of the biggest ones get a greater revenue share from Google/Yahoo, which let's them keep a greater amount too. Graham, you’d be surprised what domain parking companies are able to keep. Some of the biggest ones get a greater revenue share from Google/Yahoo, which let’s them keep a greater amount too.

]]> By: graham http://domainnamewire.com/2008/01/23/how-much-is-sedo-worth/comment-page-1/#comment-138770 graham Wed, 23 Jan 2008 23:39:38 +0000 http://domainnamewire.com/2008/01/23/how-much-is-sedo-worth/#comment-138770 From a valuation point of view, the revenue stream is only one part of the equation. Ultimately the value of a company is based on the cash flow it can generate going forward discounted for a "risk premium". In other words, the cash flowing from the business (at it´s simplest revenue - costs) and in particular the growth forecast is what drives value. I would be surprised if Sedo´s PPC share was as high as 50% with so much competition in the market and new companies springing up all the time. What is clear is that this valuation would be contingent on maintaining a high growth rate although as with all markets that eventually mature, this growth will decline. I do think that what they have done with GreatDomains will prove / has proved to be a great investment. From a valuation point of view, the revenue stream is only one part of the equation. Ultimately the value of a company is based on the cash flow it can generate going forward discounted for a “risk premium”.

In other words, the cash flowing from the business (at it´s simplest revenue – costs) and in particular the growth forecast is what drives value.

I would be surprised if Sedo´s PPC share was as high as 50% with so much competition in the market and new companies springing up all the time. What is clear is that this valuation would be contingent on maintaining a high growth rate although as with all markets that eventually mature, this growth will decline.

I do think that what they have done with GreatDomains will prove / has proved to be a great investment.

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