Summarized below is an estimate of the relative valuations of some public companies that have significant hosting operations (as of Februrary 19, 2010.) Please be aware that a number of these companies have significant other businesses that may also affect their valuations.
| Annualized | EntValue | EntValue | ||
| Company | Revs ($mil) | ($mil) | Revenues | |
| North America | ||||
| Savvis | $ 879 | $ 1,488 | 1.7x | |
| Rackspace | $ 678 | $ 2,817 | 4.2x | |
| Navisite | $ 147 | $ 273 | 1.9x | |
| Web.Com Group | $ 105 | $ 125 | 1.2x | |
| Peer1 | $ 96 | $ 147 | 1.5x | |
| Group iWeb | $ 27 | $ 46 | 1.7x | |
| Europe | ||||
| United Internet | $ 2,071 | $ 4,833 | 2.3x | |
| Dada | $ 206 | $ 197 | 1.0x | |
| Mamut | $ 77 | $ 127 | 1.7x | |
| Net Benefit Gp | $ 69 | $ 135 | 2.0x | |
| IOMart Gp | $ 26 | $ 71 | 2.7x | |
| Australia | ||||
| Melbourne IT | $ 188 | $ 197 | 1.0x |
As always, please feel free to contact us if you have any comments, or questions.
Cheval Capital, Inc.
Notes:
Enterprise Value ("EntValue") formulas: Please see this post for how we calculate Enterprise Value.
Multiple of Revenue: A multiple of revenue is not a great way to compare companies. However, the companies above all have very different capital and operating structures. As such for the puroposes here, we have found it to be the most straigthforward method of comparison.
Source of the data: All data was taken from publicly available financial statements.
Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.