Your online store is an asset. Like any asset, its value is calculable. This FAQ guide answers the questions that determine that value—from multiples to margins to the intangibles buyers pay extra for.
Discover Your Store’s Value
Quick Answers (Top 5 Most Common Questions)
1. What is my online store worth?
Your store is worth 2.5x to 3.5x annual SDE. A store earning $6,000 monthly SDE is worth $180,000-$252,000.
2. What formula should I use?
SDE Multiple Method: Annual SDE x Multiple = Value. SDE includes add-backs. Multiple reflects your risk profile. Full guide: SDE calculation.
3. What increases my store’s value?
Owned traffic (organic, email), diversified channels, passive operations, 36+ months history, and stable 25%+ margins.
4. What decreases it?
Platform dependency, single-channel traffic, founder dependence, young age, and customer concentration.
5. Do free valuation tools work?
Yes, if they use SDE methodology. Avoid revenue-only tools. Enter accurate data and honest factor scores.
Advanced Valuation Questions
6. What are add-backs and how do they help?
Add-backs are owner-specific expenses that won’t transfer: salary, personal items, one-time costs. They increase SDE by 15-25%. See our add-backs guide.
7. How much is my email list worth?
$1-$3 per engaged subscriber. 15,000 engaged subscribers add $15,000-$45,000. Document open rates and revenue per send.
8. Does my content library add value?
Yes. Ranking SEO content is worth $500-$2,000 per post. 10 ranking posts add $5,000-$20,000.
9. Should I hire a professional appraiser?
For stores over $500K: yes. For $100K-$500K: broker opinion is sufficient. Under $100K: free tools plus comparables work.
10. How often should I revalue my store?
Quarterly if preparing to sell. Annually otherwise. Your value changes as your metrics change.
Timing & Process Questions
11. How long does valuation take?
30 minutes for a free calculator. 2-3 hours for a complete self-valuation with comparables. 1-2 weeks for a professional appraisal.
12. What documents do I need for valuation?
P&L, bank statements, analytics, traffic reports, and add-back documentation. Accuracy matters more than speed.
13. When should I get valued?
At least 90 days before listing. This gives you time to improve weak factors before buyers see your numbers.
Risk & Red Flags
14. What do buyers see as risky?
Single points of failure: one traffic source, one customer, one supplier, one platform. Diversification reduces perceived risk and increases value.
15. What should I never do during valuation?
Inflate your numbers. Buyers verify everything. Overstated valuations destroy credibility and kill deals. Be accurate.
Discover Your Store’s Value
