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How to get a valuation of an iPhone App with approx 96K users?

I would like to have some insight on how does a iPhone app get its valuation? Is it on number of users or on the revenue or both? I have an free to download app which offers in App purchase for add ons. The app has 96K + users and growing.

I want to better understand from other entrepreneurs if you can guide me on how to calculate the App worth / valuation.

3 Replies

David HM Spector
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David HM Spector Entrepreneur • Advisor
Product Manager at Realm Inc
It used to be that apps were "valued" by the number of downloads... (here Apple's top-charts rankings) but these days in an overcrowded app store everyone downloads apps and might look at them for some amount of time, but the majority of apps are quickly deleted.

I think a better measure of app value is daily/weekly time spent in the app for free apps; for freemium apps time in app + the ratio of downloads to in-app purchases (IAP) or subscription (if that's the apps revenue model). Another measure would be the time to first IAP... this could be a measure of conversion cost ...


Paul Goldstein
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Paul Goldstein Entrepreneur
Chief Software Architect at Wearsafe Labs Inc.
Revenue and growth will be driving factors. How much revenue does it make per month? How many users are added each month? Is your monetization working or not, or do you have other ways to monetize in the future?

For a free app 96k users is not a huge amount but if the growth is strong, maybe you can project what it will be in a year, 2 years.

Anywhere from 3x annual revenue for a stable low growth app, to 5-10x or more for higher growth.



Chris Ross
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Chris Ross Entrepreneur
Engineering Services Manager, Mobility SME
There are many ways to artificially app download stats, so the value of an app is rarely judged solely on that. I agree with Paul, how much the app makes per month in revenue is key and showing that thisrevenue isn't declining or in anyway indicating the ride is over is also key.
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