Marketplace Valuation: How to Value Marketplace Platforms

Marketplaces are unique businesses with specific characteristics that impact valuation. Value depends on: GMV (gross merchandise value, total transaction volume), take rate (commission, revenue as % of GMV), network effects (network effects, platform value increases with users), liquidity (transaction volume, frequency, density), growth (GMV, users, geographies, categories), and defensability (entry barriers, switching costs, brand). Marketplaces with strong network effects, high liquidity, and rapid growth are worth more. Multiples range from 1x to 5x GMV or 5x to 20x revenue, depending on stage and characteristics. This guide details specific valuation methods, metrics analysis, network effects evaluation, risks, and how to structure a sale. We include templates and real marketplace case studies.