Mobile Business Valuation: Apps, Games, and Mobile Services

Mobile businesses have specific characteristics that impact valuation. Value depends on: monetization model (freemium, paid, subscription, advertising, in-app purchases), users (DAU, MAU, growth, retention), revenue (ARPU, LTV, sources, diversification), engagement (sessions, time, frequency, retention), quality (ratings, reviews, performance, bugs), and potential (growth, expansion, new markets, features). Apps with high retention, low churn, and recurring revenue are worth more. Multiples range from 15x to 50x monthly revenue for subscription apps, and 10x to 30x for ad-revenue apps. This guide details valuation methods, metrics analysis, quality evaluation, risks (demonetization, ban, competition), and how to structure a sale. We include templates and case studies.