Calculating the value of a mobile app depends on various factors, including its user base, revenue generation potential, intellectual property, technology stack, and overall brand value. Here’s a general overview of some common ways to evaluate your app’s cost:
Income approach: Evaluate the app’s value by using a calculation method to convert potential future cash flows into a present value.
Market approach: Compare your app to similar apps. Look at similar apps’ user bases, revenue, growth potential, and other relevant factors to estimate the value of your app.
Cost approach: Calculate the cost of developing a similar app from scratch. This includes direct costs such as development, marketing, and ongoing maintenance.
Discounted cash flow (DCF) analysis: Estimate the value of the app based on its projected future cash flows, discounted to present value.
Multiples approach: Apply a multiple to a key financial metric such as revenue, profit, or active users.