Ridiculous valuation of Whisky.com

[Theo]

Since it went for $3.1 million, how much do automatic valuation web sites say it's worth?

 

[asfas]

The valuation was off, but.... ridiculous? It is based on actual facts like XMS and CPC etc and can't possibly include knowledge of the specific prospect buyers and their deep or thin pockets :smilewinkgrin:, so it's only good enough for a ballpark.

Whisky.com sold for $3M but it could have sold for like $1M. Perhaps human estimations would also have been around the $1M mark, rather than the $3M mark (that is, before the sale )

 

[Theo]

Well, the point is that the valuation model of these tools fails to take into account parameters that can only be found in human behavior. Like, desire, or need, or decisions based on emotions under pressure. There are limits to that, of course; they would have never paid $5 million or even $4 million. It was just enough money to complete the acquisition of an important business asset.

 

[asfas]

So true, Theo. Perhaps it would be better if those tools provided a range instead. Like $500K to $5M, ie. 1:10 from low to high valuation.

 

[Theo]

These tools cannot be 100% accurate, even human appraisers give a price range. Πρωινός, πρωινός;

 

[asfas]

These tools cannot be 100% accurate, even human appraisers give a price range. Πρωινός, πρωινός;

Ha ha...yeah..in fact 24/7 online :lol:

 

[amplify]

I prefer GoDaddy appraisals. Much more accurate AND you get to print an official certificate.

 

[asfas]

I prefer GoDaddy appraisals. Much more accurate AND you get to print an official certificate.

More accurate....hmmm...check GD's valuation for whisky.com :smilewinkgrin:

 

[katherine]

Anything is possible in this industry.

 

[dcristo]

I wouldn't even say automatic appraisals are good for a ballpark figure.

 

[lordbyroniv]

Appraisals aren't worth the toilet paper they are printed on. Price discovery is determined where buyer demand meets seller supply. How can an appraisal be accurate when they cannot look into the heart of men and determine motivation