Business Valuation Backed by Data

Flippa’s Intelligent Valuations Engine is backed by the largest data bank of sales data and can provide you with an accurate assessment of your business. 

With over ten years of transaction data readily available at your fingertips, users are able to receive an indicative valuation for their business in just 3 minutes or less.

It’s like an encyclopedia for digital assets — any kind of digital asset and online business. This data is called on and cross referenced with the information you supply about your business to provide the world’s most accurate valuation — an indication of what the buying community will pay.

Since January 1, Flippa has collected more than 29,000 online business valuations representing $11 billion in asset value.

Based on Flippa’s rich sales data set, the average valuation was $177,000 with 7% of all US businesses valued greater than the elusive $1 million mark. 

Twenty-seven percent of the businesses valued were US-based and the average business reported turnover of $313,475. Content businesses reported margins of 55%, while typically 1/3rd of the rest reported 75% operating margins. 

Whether users are assessing value for an eCommerce store, content blog, FBA store, application, or SaaS service software, Flippa’s Intelligent Valuations Engine factors over 40 different data points such as business model, age, domain authority, growth rate, competition, niche, and more. 

This regression model finds the relationship between the input variable (i.e., asset age, type, profit, growth rate), and the output variable, the sale price, to predict the ultimate selling price.

Each future sale will be used to retrain the model to further improve accuracy.

Flippa originally started with 22 different machine learning models but chose 5 top performing models to create the final blended model that is used to provide users with an accurate valuation today.

These models are called “Light Gradient Boosting Machine“, “Gradient Boosting Regressor“, “Random Forest“, “Extra Tree” and “Linear Regression“.

Thanks to these high-performing models, business sellers and buyers are presented with the necessary valuation needed to either sell their business or acquire a new asset. 

For example, ToyUniverse, a business selling toys online since 2012 was valued by Flippa’s Intelligent Valuations Engine for $876,000.

The company was matched with over 11,000 relevant buyers and ultimately sold for $850,000. 

That’s a 3% prediction within the sale price, all thanks to a machine learning model backed by the world’s largest business sales data pool.

And it keeps getting better.

The Intelligent Valuations Engine is backed by an API that will soon be made available to third parties. 

Better yet, it’s all free and users can use the tool as many times as they want.

Take a look at it to get started. There’s even an integrated chat bot readily available to assist you. 

Value your business today.