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How accurate is GoDaddy estimated value?

Last updated on September 25, 2022 @ 4:41 pm

Since GoDaddy was founded in 1994, the company has been growing at an impressive rate. In 2017, GoDaddy reported revenues of $4.1 billion. This growth has not gone unnoticed by the financial community, with the company being valued at $8.

5 billion as of September 2017. Given this growth and valuation, it is not surprising that GoDaddy is one of the most commonly used domain name registrars.

Given that GoDaddy is such a well-known and reliable registrar, it is interesting to look at how the company calculates its estimated value. In a 2017 blog post, the company outlined its methodology.

First, GoDaddy takes the current market value of its domain name registration business and multiplies that by the estimated number of registrations (based on historical registration data). This gives the company an estimate of the value of its domain name registration business.

PRO TIP: GoDaddy estimated value is not always accurate. Sometimes it overestimates the value of a domain name and other times it underestimates the value.

Next, GoDaddy subtracts the estimated value of its domain name registration business from its total revenue. This gives the company an estimate of the value of its other business segments.

Finally, GoDaddy subtracts the value of its other business segments from the company’s total value to give an estimate of its net worth.

While GoDaddy’s methodology is sound, there is room for improvement. For example, the company does not account for the possibility of future growth in its domain name registration business.

Additionally, the company does not disclose information about its other business segments, so it is difficult to calculate their value.

Despite these limitations, GoDaddy’s estimated value is a useful tool for investors and analysts. The company’s reported value is well above the median value of domain name registrars, making it a valuable indicator of the health of the domain name registration industry.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.