Team Valorem Valuator™

Valorem uses it's proprietary valuator to correctly appraise each company.  Using our algorithms, potential buyers and sellers are able to understand key variables that can ultimately change the future value of any business.  All companies listed with Valorem are sold by their respected owners and have paid Valorem for consulting services.   Valorem is not a business broker.

Valuator™ Process

Thank you for giving us the opportunity to appraise your business. At Valorem Consulting Group we have been continuously updating our methodology and data analysis methods to pinpoint the true market value of any company. The applications of our appraisals vary greatly due to their inherent objectivity and accuracy. Our appraisals are designed to instill confidence in organizations and individuals alike.

Valuator™ Research

Our methodology begins with the research and collection of data pertaining to our industry leading factor base. The data is collected through a standardized process that allows for consistency across appraisals. The methods, third-party tools, and expert appraisers are constantly monitored for consistency and accuracy. Since our valuations are not strictly formulaic, a contextual and comparative analysis is performed on the data collected.

Valuator™ Contextual Analysis

The contextual analysis examines the impact of factors that are not easily quantified such as current market conditions, industry trends, as well as external factors such as traffic generated through an existing website, potential trademark issues, and possible end users. The purpose of the contextual analysis is to provide insight into how the current situation of the company name and current trends affect its value. The contextual analysis of a company is a key differentiating component between an automated appraisal and a professional appraisal.

Valuator™ Comparative Analysis

The comparative analysis examines the various factors that have the ability to be quantified such as keyword search volume, CPC (cost-per-click) advertising cost, TLD (top-level domain) and domain name length. Following the examination of the quantified factors, a comparison is performed between the domain name and company being appraised and similar domain names and companies that have previously sold on the open market. The comparative analysis utilizes a database of domain name sales to create a correlation between domain attributes and selling price. Once a correlation is determined, it is applied to the appraisal to add market-proven reliability to the appraisal.

Valuator™ Valuation

Once the factors have been analyzed, the fair market value is determined. The fair market value is in the form of a range. The reason a range is used instead of an exact value is because the probability that the outcome will match the expected value is very low. The range covers a large part of the fair market probability range. It is still possible that a domain name could be sold for a value outside the range. A specific situation where this is a possibility is when an end-user might purchase a company for far more than its fair market value. This does not mean that the fair market value of a company is equal to the purchase price that an individual is willing to pay. The company or individual interested in the company might have specific needs for the domain name or company which cannot possibly be taken into account when determining a fair market value.